Full text of Federal Reserve Bulletin : May 1998
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VOLUME 84 • NUMBER 5 •
MAY
1998
FEDERAL RESERVE
BULLETIN
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C.
Table of Contents
309 U.S. INTERNATIONAL TRANSACTIONS IN
1997
The U.S. current account deficit widened further
in 1997, reaching $166 billion. U.S. imports of
goods continued to exceed exports by a substantial margin. However, goods trade accounted
for only a small part of the deterioration in
the current account balance last year. The shift
of investment income from positive to negative
(the first time since 1914) was the major contributing factor; it reflected the cumulative effect of
deficits in the current account that have persisted
since 1982 and the balancing net capital inflows.
The financial crises in Asia in the second half of
1997 visibly affected U.S. capital flows but influenced the U.S. current account in only a limited
way in that year. Their effect on the U.S. current
account is likely to be more apparent in 1998.
322 INDUSTRIAL PRODUCTION AND CAPACITY
UTILIZATION FOR MARCH 1998
Industrial production increased 0.2 percent in
March, to 127.7 percent of its 1992 average;
revised estimates of output now show declines
of 0.2 percent in both January and February. The
rate of industrial capacity utilization decreased
0.1 percentage point in March, to 82.2 percent.
325 STATEMENTS TO THE CONGRESS
Alan Greenspan, Chairman, Board of Governors, discusses the global financial system and
the current Asian crisis and says that he fully
backs the Administration's request to augment
the financial resources of the International
Monetary Fund by approving as quickly as possible U.S. participation in the New Arrangements to Borrow and an increase in the U.S.
quota in the IMF; hopefully neither will turn out
to be needed and no funds will be drawn, before
the Subcommittee on Foreign Operations of the
Senate Committee on Appropriations, March 3,
1998.
326 Laurence H. Meyer, Member, Board of Governors, testifies on behalf of the Federal Reserve
Board on proposals in S. 1405 to allow the
payment of interest on demand deposits and on
the required reserve balances of depositories at
the Federal Reserve and says that the Federal
Reserve strongly supports these measures and
that eliminating price distortions on demand
deposits and on required and excess reserve
balances would spare the economy wasteful
expenditure, increase the efficiency of our financial markets, and facilitate the conduct of monetary policy, before the Senate Committee on
Banking, Housing, and Urban Affairs, March 3,
1998.
330 Chairman Greenspan briefly reviews the outlook
for the economy and discusses the coming budgetary challenges and says that projections of
budgetary surpluses are based on an extrapolation of steady economic growth and subdued
inflation in coming years and that achieving
such a performance in these uncertain times,
with the U.S. economy now subject to a fine
balance of powerful forces of expansion and
restraint, will provide policymakers with a considerable challenge, before the House Committee on the Budget, March 4, 1998.
332 Governor Meyer comments further on S. 1405,
the Financial Regulatory Relief and Economic
Efficiency Act of 1997, and says that the Board
supports several sections of this bill that eliminate unnecessary regulatory burdens but believes that several other provisions appear inadvertently to have gone beyond the goal of
regulatory relief and may result in changes to
the law that were neither intended nor desired;
these include the elimination of a number of
important limitations that have been applied to
nonbank banks, expansion of the mixing of commerce and banking by owners of savings associations, the Federal Reserve's making available
intraday credit in the form of daylight overdrafts to the Federal Home Loan Banks, allowing banks to discount the price of products and
services that are offered in bundles to consumers, and allowing bank affiliations with
government-sponsored enterprises, before the
Senate Committee on Banking, Housing, and
Urban Affairs, March 10, 1998.
337 ANNOUNCEMENTS
Shift from a contemporaneous system of reserve
requirements to a lagged basis.
Issuance of an interim rule to Regulation E
permitting depository institutions to deliver disclosures electronically.
Publication of a revision to the official staff
commentary to Regulation Z.
Issuance of a final rule on the expansion of the
examination frequency cycle for certain financial institutions.
Clarification of operating standards relating to
customer disclosures of section 20 subsidiaries.
Revisions to the cash access policy on shipments and deposits in an interstate branching
environment.
Request for comments on a comprehensive
review of Regulations B and C; proposal to
permit the electronic delivery of disclosures for
four consumer protection regulations; request
for comments on the benefits and drawbacks
associated with the Board's same-day settlement
rule; request for comments on the implications
of potential further rule changes to reduce legal
disparities between the Federal Reserve Banks
and private-sector banks in the presentment and
settlement of checks; and an extension of time
to receive public comments on the advance
notice of proposed rulemaking concerning
Regulations T, U, and X.
Availability of the transcripts of the 1992 meetings of the Federal Open Market Committee.
Publication of the December 1997 update of the
Bank Holding Company Supervision Manual.
Issuance of the 1998 Trading and CapitalMarkets Activities Manual.
Changes in Board staff.
341 LEGAL DEVELOPMENTS
Various bank holding company, bank service
corporation, and bank merger orders; and pending cases.
377 DIRECTORS OF THE FEDERAL RESERVE
BANKS AND BRANCHES
List of Directors, by Federal Reserve District.
AI FINANCIAL AND BUSINESS STATISTICS
These tables reflect data available as of
March 27,1998.
A3 GUIDE TO TABULAR PRESENTATION
A4 Domestic Financial Statistics
A42 Domestic Nonfinancial Statistics
A50 International Statistics
A63 GUIDE TO STATISTICAL RELEASES
AND SPECIAL TABLES
A74 INDEX TO STATISTICAL TABLES
A76 BOARD OF GOVERNORS AND STAFF
A78 FEDERAL OPEN MARKET COMMITTEE AND
STAFF; ADVISORY COUNCILS
A80 FEDERAL RESERVE BOARD PUBLICATIONS
A82 MAPS OF THE FEDERAL RESERVE SYSTEM
A84 FEDERAL RESERVE BANKS, BRANCHES,
AND OFFICES
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood • Donald L. Kohn
• J. Virgil Mattingly, Jr. • Michael J. Prell • Richard Spillenkothen • Edwin M. Truman
The Federal Resen'e Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed
except in official statements and signed articles. It is assisted by the Economic Editing Section headed by S. Ellen Dykes, the Multimedia Technologies Center
under the direction of Christine S. Griffith, and Publications Services supervised by Linda C. Kyles.
U.S. International Transactions in 1997
Lois E. Slekler, of the Board's Division of International Finance, prepared this article. Virginia Carper
and Clarke Fauver provided research assistance.
The U.S. current account deficit widened further in
1997, reaching $166 billion. U.S. imports of goods
continued to exceed exports by a substantial margin
(table 1). However, goods trade accounted for only a
small part of the deterioration in the current account
balance last year. The shift of investment income
from positive to negative (the first time since 1914)
was the major contributing factor; it reflected the
cumulative effect of deficits in the current account
that have persisted since 1982 and the balancing net
capital inflows. The financial crises in Asia in the
second half of 1997 visibly affected U.S. capital flows
but influenced the U.S. current account in only a
limited way in that year. Their effect on the U.S.
current account is likely to be more apparent in 1998.
The current account deficit in 1997 was almost as
large as the record deficit in 1987; relative to the size
of the U.S. economy, however, it was substantially
smaller (2 percent of gross domestic product in 1997
versus 3.6 percent in 1987).
MAJOR ECONOMIC I\:I-U:H\:CLS
L'.S. INTER\A II ON \I
av
7R.\AS.\(7l()NS
The U.S. current and capital accounts in 1997 were
shaped by a wide variety of factors. These included
U.S. economic growth and exchange rate develop-
1.
l!..N. c i i n c n l ;un>inu b a l a n c e . h K P
ments, the financial crises affecting many developing
economies in Asia, and rates of economic growth in
other developing and industrial countries.
U.S. Economic (iiowth and Exchange Rate
Developments
The U.S. economy grew at a robust pace in 1997
(table 2). Aggregate demand (including the demand
for imports of goods and services) was strong,
and corporate profits (including the profits of U.S.
affiliates of foreign companies) were high. Inflation
nonetheless remained subdued, partly because of
decreases in the prices of imported goods as a result
of the appreciation of the dollar against many currencies and because of declines in prices on international
commodity markets.
From December 1996 to December 1997 the dollar
gained 12 percent in nominal terms against an average (weighted by multilateral trade weights) of the
currencies of the other Group of Ten (G-10) countries
(chart 1). The dollar appreciated in terms of the other
G-10 currencies during the first half of 1997, as the
continuing strength of U.S. economic activity raised
expectations of further tightening of U.S. monetary
conditions. Also, the dollar tended to rise in terms of
the German mark and other continental European
currencies because of concerns about the implications of the transition to the European Economic and
Monetary Union and perceptions that monetary policy was not likely to tighten significantly in prospec-
LIT
Billions of dollars
Item
1992
1993
1994
1995
1996
-56.4
-90.8
-1335
-I29J
-148-2
-18J
-39.2
-96.1
56.9
-72.3
-132.6
603
-104.4
-16&2
61.8
-101.9
-173.6
71.7
-111.0
-191.2
80.1
-2.6
Services, net
Portfolio investment, net
Direct investment, net
18.0
-33.6
51.6
19.7
-36.0
55.7
9.7
-41.0
50.8
6.8
-53,2
60.0
2,8
-143
66.8
67,7
-35.2
-38.1
-38.8
-34.0
-40.0
-38.5
Current account Balance
Trade la goods and services, net ..
Unilateraltransfers.net
....
NOTE. In this and the tables that follow, components may not sum to totals
because of rounding.
1997
1996to1i»7
-m
1.5
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, US.
international transactions accounts.
310
Federal Reserve Bulletin • May 1998
in rcil ( I D P in tin- r a i l e d Sink's and ;tl>rnjil.
Percentage change, year over year
Country
United States
u
Total foreign.
2.7
1996
1997'
2.8
3.8
3.6
4.2
Industrial countries' index * . . .
Canada
Western Europe
Japan
%,$
24
17
U
1.2
2.2
4.1
2.9
.9
Developing countries' index i .
34
6.0
6.9
4.5
5,1
3.2
62
6.0
6.4
7.0
5,0
Asia
,
Latin America
7.7
-3.4
Mexico
*
Other Latin America
Z.4
2.9
3.8
NOTE. Aggregate measures are chain-weighted by moving bilateral shares in
US. exports of nonagricultural merchandise.
1. Data for 1997 are partly estimated.
2. The industrial countries' index covers Australia and New Zealand in
addition to Canada, Japan, and Western Europe. The index for Western Europe
comprises Austria, Belgium, Denmark, Finland, France, Germany, Greece,
Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland,
Turkey, and the United Kingdom.
3. The developing countries in the index for Asia are the Peoples Republic
of China. Hong Kong, Indonesia, Korea, Malaysia, the Philippines, Singapore,
Taiwan, and Thailand. The countries in "Other Latin America" are Argentina,
Brazil, Chile, and Venezuela.
SOURCE. Various national sources.
tive member countries. In the first half of the year, the
dollar fluctuated against the Japanese yen in response
to varying indicators of the strength of the Japanese
expansion. But in the second half, the yen depreciated in response to evidence of faltering economic
activity and perceptions of fragility in the Japanese
financial sector. The perceptions of fragility were
heightened by concerns about the negative effect on
Japan of the financial crises elsewhere in Asia. As
will be discussed in greater detail, the dollar also
\ \ v i ^ l i k ' i l - ; i \ c r a ^ c CNLII.IM^L' I.IIC u t l h c i
.. u i a ' i i t i c s n l ilk" ( i m i i p i i l ' T e n . I'•M0 l ) 7
ac;iinst
Index. December 1996 = 100
— HO
—
1990
IH92
1994
90
1998
NOTE. The weight for each of the ten countries is the 1972-76 average world
trade of that country divided by the average world trade of all ten countries
combined. Besides the United States, the Group of Ten consists of Belgium,
Canada, France, Germany, Italy, Japan, the Netherlands. Sweden, Switzerland,
and the United Kingdom. The data are monthly.
appreciated strongly against the currencies of developing countries in the second half of 1997.
Robust U.S. economic growth and tax collections
moved the federal government budget close to balance in 1997. In general, reducing government
dissaving would tend to move the current account
toward balance as well; however, the current account
deficit has been widening. In terms of national
income accounting identities, the growing U.S. current account deficit (and the related national income
concept, negative net foreign investment) must reflect
a growing gap between domestic investment and
saving (chart 2). However, the statistical discrepancy
in the national income accounts has shifted from a
large positive value to a large negative value in recent
years, obscuring whether increases in investment, or
reductions in private savings, or both have been the
counterpart to the growing current account deficits. In
any case, the inflow of foreign savings, which has
financed part of U.S. investment over the past decade
and a half, has raised productive capacity relative to
what it would have been but has required ongoing
payments of investment income to foreigners.
Asian I•'inaiicial Crises
In July, strong downward pressure on the Thai baht
marked the beginning of a series of Asian financial
crises. Severe financial market pressures spread to
other East Asian countries—most notably Indonesia
and South Korea. These pressures appeared to have
been triggered mainly by market concerns over
substantial external deficits, possibly overvalued
exchange rates, weak financial systems, sizable
foreign-currency-denominated indebtedness, and
government policy responses that were widely
viewed as inadequate. The financial market pressures
persisted despite the initiation of several financial
assistance agreements led by the International Monetary Fund.
Several countries experienced sharp depreciations
in their currencies. Between the end of June and the
end of December, the Thai baht, Korean won, and
Indonesian rupiah lost about half their value; the
Indonesian rupiah continued to fall sharply in early
1998 (chart 3). The financial market turmoil in East
Asia spread to Hong Kong and, to a lesser extent,
Taiwan. However, the peg of the Hong Kong currency to the U.S. dollar has been successfully maintained, and the depreciation of the Taiwan dollar has
been relatively small.
The turmoil in Asian financial markets was accompanied by sharp declines in stock prices, increases in
interest rates, sharply reduced credit availability,
U.S. International Transactions in 1997
L ' . S . i i t V L ' s i i i i c i i l . s a v i n g s , ; m j c L i n e n l C I U C I H I I I I b . i l . m i - v ;i>. ,i | K ' i w n i . r . " - ' u l ' f i D I '
31'.
P'SI' ' ' 7
Curwm account Imlnnce
I
1981
1983
1985
1987
I
1989
I
I
1993
1991
1995
NOTE. The statistical discrepancy is from the national income and product
accounts (NIPA). The data are quarterly.
SOURCE. US, Department of Commerce, Bureau of Economic Analysis,
NIPA, and US. international transaction accounts.
heightened uncertainty, and, in some cases, somewhat tighter fiscal policies in connection with international support packages. As a consequence, economic
activity slowed markedly in several Asian developing economies in the second half of 1997; growth
between the second and fourth quarters of 1997 for
these economies as a group averaged only about
2% percent at a seasonally adjusted annual rate, or
less than half the 6 percent or more of earlier periods
(table 2). This slowdown is expected to continue into
1998.
ened the outlook for external demand and heightened
concerns about the fragility of Japan's financial
sector.
heonontie Growth in Other Developing and
Industrial Countries
Financial markets in some Latin American countries
also came under pressure as the Asian crises led
investors to reassess the riskiness of their exposures.
However, despite considerable pressure, both the Brazilian exchange rate regime and the peg of the Argentine peso to the dollar held. In Brazil, high domestic
interest rates and the tightening of macroeconomic
policy to support the exchange rate weakened domestic demand toward the end of the year. In Mexico, the
recovery of economic activity from the recession
following the 1994—95 crisis continued, although the
peso weakened. On average, economic growth in
Latin America (weighted by shares in U.S. exports)
was robust in 1997 (table 2).
Economic growth in the industrial countries finned
in 1997 (table 2). Growth in Canada was particularly
robust, and most of the European countries also
showed some improvement. Japan was a notable
exception, as the growth of real GDP stalled partly in
response to sizable fiscal contraction. In addition, as
mentioned earlier, crises in many of Japan's Asian
trading partners in the second half of the year weak
I>1.\ IJ.OPMI MS
l\
IX GlH)l.)S AM)
.S'/.A'l ICI..S
In 1997 the overall U.S. trade deficit rose slightly in
nominal terms from its 1996 level (table 1). A small
increase in the deficit in trade in goods was almost
matched by the increase in the surplus in services
trade. However, because of differing price developments among the trade components, the trade deficit
in terms of chained (1992) dollars continued to grow,
and net exports subtracted about 0.6 percentage point
from the growth of U.S. GDP between the fourth
quarter of 1996 and the fourth quarter of 1997.
i.
Dnll.il L-»
hum.ii) 1
lnl
MjloLld
l n | , - | - l [ i-111-IVIlL-H.'s
bidfS.Xune3O.l997
no
South Korean won
— ....
."_
95
k
:
so
65
Thaibaht
50
—
—
Indnnniun rupiah \t
35
a.
20
—
i
i
i
i
1
1
1
1
1997
1
1
1
1
1
1
NOTE. Dollars per unit of foreign currency. The data are daily.
1
1
312
'.
Federal Reserve Bulletin • May 1998
I'.S. inlrnuitumal Intilc1 in L;I»KK mid s e r v k w
Billions of dollars
Hem
Dollar change
1995
1997
1996
1996 to 1997
1996
Balance on good* aid *ervfees
Exports or goods and services
Services
Goods
Agricultural products
Noiugricoltoral.goods ..-.,...
,....
Capital goods
Aircraft and parts... r.*. ..•••»-«..
Computers, peripherals, and parts.
Semioondueiore
Otber capital goods
Consumer goods
>...,.
Automotive product*
,
Industrial supplies
Other nonagjicultutal exports
Imports of goods and services
Services
Good*
,
Oil and products
Noo-oilgoods
Capital goods
Aircraft and parts
Computers, peripherals, and pans.
Semiconductors
Other capital goods
Consumer goods
Automotive products
Industrial supplies
Foods and other non-oil imparts
-Ul
795
219
576
57
519
234
26
40
34
134
64
62
146
13
849
237
612
62
551
253
31
44
897
147
960
157
m
56
«93
221
11
56
39
115
im
ft*
129
59
-114
-94
-2.7
932
253
678
54.2
18.1
36.2
4.3
3L9
19.0
5.0
4.0
1.6
8.4
6.0
3.0
2.0
1.9
82.7
16.4
66.2
-3.1
69.3
41.1
10.4
5.6
63.4
9.6
85.3
294
41
49
39
165
77
73
158
17
36
143
70
65
148
15
1,045
168
877
72
805
254
17
803
73
731
229
13
62
37
117
171
129
137
64
la
22.1
7.4
8.4
10.1
2.3
11.3
74J
53.8
16.7
37.1
8.0
2,0
-.6
74,7
25.2
3.6
8.1
6.0
-2.0
70
37
-.1
2.0
11.0
5.0
8.3
4.8
131
193
141
145
72
13.6
21.9
11.7
8.0
7.9
NOTE. Changes in this and subsequent tables may differ from those calculated from the dala shown in the tables because of rounding.
SOURCE. US. Department of Commerce, Bureau of Economic Analysis, U.S.
international transactions accounts.
Exports
cultural prices fell from elevated levels reached early
in the year.
Given the loss of export price competitiveness
associated with the appreciation of the dollar against
many currencies over the past two years (chart 4),
the strength of U.S. exports of goods in 1997 was
somewhat surprising. Sustained economic growth
The value of U.S. exports of goods and services grew
$83 billion in 1997, or about 10 percent, an acceleration from the 7 percent gain in 1996 (table 3).
Exports of goods grew more rapidly than exports of
services.
Goods
-t.
I ' . S . e x p o r t s i>i u i m d s l o h s i i K i j o i u . i d u i ' j
piumciv
Billions of dollars
Exports of goods to Latin America rose more than
20 percent, and the growth to Canada and Western
Europe was also strong (table 4). In contrast, exports
to Japan declined slightly, and those to developing
countries in Asia grew moderately, although more
rapidly than in 1996. The financial crises in Asian
developing economies had little noticeable effect on
U.S. exports of goods in 1997.
Capital goods accounted for substantially more
than half of the increase in the value of U.S. exports
of goods in 1997 (table 3). Smaller increases were
reported for a broad range of other products, including industrial supplies, automotive products, and consumer goods. Although the quantity of agricultural
exports remained high, their value declined, as agri
1995
1996
1997
Percentage
change,
1996 to 1997
Total
S7«
612
678
10.8
Industrial countries'
Canada
,.
Western Europe . .
33S
128
132
63
351
135
13?
66
383
152
153
65
9.1
12.8
11.4
-2.0
Developing countries2 . . .
Asia..
Latin America
Mexico
Other Latin America.
241
130
96
46
50
261
135
109
57
52
295
145
134
71
62
6$
22.7
25.6
19.8
Importing region
13.1
1. The industrial countries include Australia and New Zealand in addition to
Canada, Western Europe, and Japan.
2. The developing countries include Eastern Europe and Africa in addition to
Asia and Latin America.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S.
international transactions accounts.
U.S. International Transactions in 1997 313
4.
Rcl;i[i\c [II'ILVS nl t'.xpons Liml imports. I1W—M7
tades, 1989:QI = 1.0
Growth in quantity was rapid not just for computers and semiconductors (for which price indexes
adjusted for technological change and quality
improvements—hedonic price indexes—declined
rapidly) but also for other nonagricultural exports.
Services Exports
J
I
j
1
L
L
1995
NOTE. For exports, the index is Ihe ratio of foreign prices to U.S. export
prices of nonagricultural products, excluding computers and semiconductors.
For imports, the index is the ratio of U.S. import prices of non-oil imports.
excluding computers and semiconductors, 10 the U.S. GDP deflator. The data are
quarterly.
in important U.S. export markets, particularly Latin
America, Canada, and Western Europe, partly countered the loss of price competitiveness. However,
even taking strong foreign economic growth into
account, U.S. exports increased more than would
have been expected based on estimated income and
price elasticities. U.S. exporters probably benefited
from the trend in Mexico and other Latin American
countries away from policies that sheltered domestic
producers from international competition.
The growth in the value of U.S. exports was largely
the result of the rapid growth in the quantity of goods
exported rather than increases in prices (table 5).
?.
C l u m t i c i n t h e i | i i j n n i > <>l I ! . S . o \ p n i K a m i i r
Percentage change, year over year
T^ft 6f efcpett or impart
199S
Ail exports
Service*
(ksafo ..
113
12.1!
Jtr nonagriculrural goods,.
im
a
AM imports
Service.
Goods
Oil and products
NoiS-oil goods
, peripherals, and parts
Other non-oil goods
6.1
9.5
-1.6
10.5
4Z5
74.4
5.3
1996
1997
8.3
12.4
5.5
9.5
-1.8
10.8
46.2
47.1
•5.7
5.1
15.4
1.6
16.9
30.1
4O5
12.7
9.1
14.2
5.5
9.9
7.6
JW
33.4
&S
5.4
15.1
5.1
16.2
44,0
57.1
12.0
NOTE. Quantities are measured in chained (1992) dollars.
SOURCE. U.S. Department of Commerce, national income and product
accounts.
Exports of private services grew $16 billion, or about
7 percent (table 6). The largest dollar increase was
in "other private services," a catchall category' that
included particularly large increases in U.S. receipts
for business, professional, and technical services, and
financial services. U.S. receipts of royalties and
license fees and exports of "other private services"
largely reflect the U.S. comparative advantage in
services that depend heavily on technological expertise and contribute significantly to the net surplus in
services trade enjoyed by the United States. Exports
of traditional services like travel, passenger fares, and
transportation continued to account for more than
half of U.S. services exports in 1997, but the growth
of these traditional exports was moderated by the
appreciation of the dollar and the resulting decline in
U.S. price competitiveness.
Imports
The value of U.S. imports of goods and services grew
$85 billion in 1997 (about 9 percent), somewhat
faster than the rate in 1996 (table 3). As on the export
side, imports of goods grew more rapidly than
imports of services. Imports were spurred by strong
economic growth in the United States in 1997
together with a decline in the price competitiveness
of U.S. goods (chart 4), largely as the result of the
appreciation of the dollar against many currencies.
Oil Imports
Although the volume of oil imports increased about
5 percent from 1996 to 1997, their value fell slightly
because of a 5 percent decline in the average price.
Several factors contributed to the fall in oil prices
and, at the time of this writing, have induced a further
decline from levels prevailing at the end of 1997.
Changes in the prices of imported oil have tended
to mirror changes in spot oil prices (West Texas
intermediate) with a lag of several weeks (chart 5).
Spot prices had risen quite sharply during the second
half of 1996, from $ 18.54 per barrel in June to $25.39
314
(t
Federal Reserve Bulletin • May 1998
SLT\ k.v lr;iiis;n.'
Billions of dollars
Item
Service transactions, net
1994
1995
1996
63
n
80
Exports of private services
204
63
19
27
27
67
58
17
25
23
61
Passenger fares
Other transportation
Royalties and license fees
Olher private services
Imports of private services ,
Travel......
,
(23
44
13
27
6
33
Olher transportation
.
Royalties and license fees
Other private services .'...
198?
1996lol
*
I
n
1
0
135
46
14
28
7
143
W
11
39
7
43
II
"»•
I
U.S. government and military services, net
1
0
5
SOURCE. U.S. Department of Commerce. Bureau of Economic Analysis, U.S.
international transactions accounts.
in December. Refiners—uncertain about the availability of crude oil supplies from Iraq and concerned
about the effect that such supplies might have on the
price of oil—tended to keep their stocks low.
With the oil industry operating at minimal, just-intime inventory levels, oil prices reacted quite strongly
to unanticipated shocks. Two such events in 1996—
the delay in the startup of several North Sea fields
and economic activity in the United States that was
< III p n i o
per K I T H - I . I W ^
'>'
Dollars
West Texas intermediate
— 20
stronger than anticipated—drove oil prices up. Once
Iraq began producing oil for export at the beginning
of 1997, spot oil prices fell sharply, from an average
of $25.17 per barrel in January to $19.72 in April.
Spot prices traded in a range of $19 to $20 per barrel
during the remainder of the year. Oil import prices
averaged about $18.63 per barrel in 1997, about a
dollar below the average for 1996. Spot prices fell
during January and February of 1998 as a result of
several developments: Saudi Arabia, Kuwait, and the
United Arab Emirates raised production in line with
increases in their OPEC quota; warmer-than-normal
weather from El Nino softened demand for home
heating oil; and the economic turmoil in East Asia
reduced shipments to those emerging economies.
The quantity of oil imports rose from an average of
9.4 million barrels per day in 1996 to 9.9 million in
1997 (table 7). An increase in U.S. consumption in
the range of 0.4 million barrels per day accounted for
most of the increase in the quantity of imports, as
U.S. production has been little changed over the past
four years.
— 15
I I
1985
I
1987
1989
1991
1993 1995
I II
Non-Oil Imports
1997
NOTE. The data are monthly.
SOURCE. Petroleum Intelligence Weekly, various issues; and U.S. Department
of Commerce, Bureau of Economic Analysis.
1 ..s. oil owiMiinpiioii. pioduL'lion. .nul impiiri.s. ick'utcil >c:n
The value of non-oil imports of goods increased
$75 billion in 1997 (about 10 percent), up substanI'JKll ')7
Millions of barrels per day
Item
Consumption
Production
198ft
1985
1994
(995
17,1
10.8
6.3
15.7
1U
3.1
17.7
9.4
9.0
fef
94
m
SOURCE. U.S. Department of Energy, Energy Information Administration.
;
\m
tm
18.2
9-.S
9A
im
9:4
9S
U.S. International Transactions in 1997 315
U.S. imports oi non-oil iiooils Irotn 1!v nuijor
Iradinj: parltiL-iv I'tMS-Aj;
Billions of dollars
Exporting region
1997
Percentage
change,
1996 to 1997
731
80S
10.2
421
146
155
US
456
159
170
121
8.2
8.5
9.7
5.5
309
199
99
67
32
349
222
115
78
36
12.9
11.5
15.6
16.7
13.0
1995
1996
Tblal
693
Indusirial countries'
Canada
Western Europe
jama
408
137
142
123
Developing countries 1
Asia
,
Latin America
Mexico
Other Latin America.
286
189
87
57
30
1. See table 4. note 1.
2. See table 4, note 2.
SOURCE. US. Department of Commerce, Bureau of Economic Analysis, U.S.
international transactions accounts.
tially from 1996 (table 3). Large increases in imports
of consumer goods as well as capital goods accounted
for much of the increase; imports of automotive
products also rose more than they had in 1996.
The industrial countries continued to account for
more than half of U.S. non-oil imports in 1997.
However, imports from developing countries continued to grow much faster than average (table 8).
Growth of imports from Mexico was particularly
strong, a development perhaps reflecting the continuing effect of the North American Free Trade Agreement on the pattern of U.S. trade.
As with exports, the increase in the value of nonoil imports largely reflected growth in quantity rather
(),
-—-
Scivii.cs Imports
Imports of private services rose $11 billion in 1997,
an increase of more than 7 percent (table 6). Although
imports of services that depend on technical expertise
are much smaller than exports of such services,
"other private services" accounted for about half the
increase in value of service imports. U.S. expenditures on travel abroad also increased.
1)1 \ l.l.OI'Ml-.N'IS l\
ACCOl-'XT
IIIL
C7,A'A7.\/
The two major components of the current account
other than trade in goods and services are net unilateral transfers and net investment income (table 1).
Nominal dolkn o x d u i m o r;iu- n u U ' V v IW> V7
t
than higher prices (table 5). Rapid quality improvements in computers and semiconductors continued to
push down their hedonic price indexes. However, the
prices of core imports (goods imports excluding oil,
computers, and semiconductors) also fell—about
3
A percent between the fourth quarter of 1996 and the
fourth quarter of 1997; declines in world commodity
prices played a role, but appreciation of the dollar
was also a factor. The nominal exchange rate of the
dollar against the currencies of thirteen developing
economies (weighted by bilateral import shares
excluding oil, computers, and semiconductors) appreciated 14 percent between the fourth quarter of 1996
and the fourth quarter of 1997; against the currencies
of sixteen industrial countries, the dollar appreciated
almost 9 percent during the same period (chart 6).
Index. I996.Q4's|00
U.S. dollar appreciation
.
Dollar against
sixteen industrial countries
/ —
^Jr0*
110
—
105
—
100
^ ^ ^
Dollar again*!
thirteen developing countries
jrf
95
90
1
1
1995
1
1996
1
Irtinsfcrs
Net unilateral transfers include government grant and
pension payments as well as net private transfers
to foreigners. The deficit on unilateral transfers fell
slightly from the 1996 level, to $39 billion. The 1996
level had been unusually large because of the deferring of transfers to 1996 during the budget impasse
and government shutdown at the end of 1995
(table 1).
1997
NOTE, The indexes are weighted by bilateral import shares, excluding oil,
computers, and semiconductors. The industrial countries are Australia, Austria,
Belgium, Canada, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, Portugal. Spain, Sweden, Switzerland, and the United Kingdom. The
developing countries are Argentina, Brazil, Chile, Mexico, China, Hong Kong.
Indonesia, Korea, Malaysia, the Philippines, Singapore. Taiwan, and Thailand.
The data are quarterly.
/Vt7 UniUitci ill
Net
Income
Net investment income is the difference between the
amount that U.S. residents earn on their direct and
316
Federal Reserve Bulletin • May 1998
U.S. in?I ink'mauonul investment;
Position and inciiinc. ll)X(M)7
U..S. iiiM-sUiK-n
Billions of dollars
Item
1994
Investment income, n e t . . . . . . . . .
10
Direct investroem income, nei
Receipts
Payments
51
71
20
60
90
30
67
99
32
109
42
-41
84
125
-53
10?
160
-6*
108
(71
127
209
Biniwu.itfAiil.rt
Net income
200 —
+
—
20
280 —
400 —
20
+
Net position
M0 —
—
40
—
60
—
80
1.000
Portfolio income, net
Receipts
Payments.,,.,....
1993
1996
1997
-M
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S.
international transactions accounts.
100
I 1 I I I I I I I
1981
1985
1 I I I I I [ I I I
1993
1997
NOTE. The nel position for each year is the average of Ihe year-end positions
for the current and previous years. The year-end position for 1997 was constructed by adding the recorded net portfolio and direct investment flows during
1997 to the recorded year-end position for 1996. The net position excludes U.S.
gold holdings and foreign holdings of U.S. currency.
SOURCE, U.S. Department of Commerce, Bureau of Economic Analysis; and
Federal Reserve Board.
portfolio investments abroad (receipts) and the
amount that foreigners earn on their direct and portfolio investments in the United States (payments).1
Revised data indicate that net investment income
turned negative in 1997 for the first time since 1914
(table 9). The data on investment income were
revised in light of the results of the Benchmark
Survey of U.S. Ownership of Foreign Long-Term
Securities, discussed later. As a result of large and
persistent U.S. current account deficits over the past
decade and a half, foreign assets in the United States
have grown more rapidly than U.S. assets abroad.
However, net investment income remained positive
(chart 7) long after the net investment position
became negative because foreign direct investment in
the United States has earned a far lower rate of return
than U.S. direct investment abroad.
nomic growth in many of the countries where the
United States has substantial investments and continued large additions to holdings by U.S. investors.
Direct investment receipts have tended to increase
along with the growth of U.S. investments (chart 8),
although they have varied with economic conditions
abroad. Economic growth was strong in Latin
America, Canada, and Western Europe in 1997, areas
that account for the largest shares of U.S. direct
investment abroad (table 10). In contrast, economic
growth in Japan was anemic, and growth in the Asian
developing economies fell sharply toward the end of
the year. However, these Asian economies (including
Japan) accounted for less than 15 percent of the stock
of U.S. direct investment abroad at the end of 1996.
Whereas income on investments in these Asian
economies declined, particularly in the last half of
1997, favorable developments in the rest of the world
kept receipts on direct investment up for the year.
Payments on foreign direct investment in the
United States also increased substantially in 1997 as
S,
U.S. direct in\cMnic'nl abmail:
Position and rcLvipts, lc)S0 47
Billions of dollars
Nul Direct Investment Income
Net direct investment income reported by U.S. and
foreign corporations on Department of Commerce
surveys rose little in 1997, as the dollar increase in
payments about matched the increase in receipts
(table 9).
The growth of income on U.S. direct investment
abroad in 1997 was the product of both strong eco-
1. An investment is considered direct if a single owner acquires
10 percent or more of the voting equity in a company. All other U.S.
claims on foreigners or foreign claims on the United States are
included in the other category—portfolio investment.
I
1 I I t I 1 1 1 1 1 1 I I
1981
1585 1 9 8 ?
I
l l l
im
l l
im
NOTE. The position for each year is the average of the year-end position for
the current and previous years valued at current cost. The year-end position for
1997 was constructed by adding the recorded direct investment flows during
1997 10 the recorded year-end position for 1996.
SOURCE. US. Department of Commerce, Bureau of Economic Analysis; and
Federal Reserve Board.
U.S. International Transactions in 1997 317
10.
U.S. direct iii\e\Miii. l iil position a h n c u l . by ;nv;i.
l
'
l - n K ' I L I N t l l l i / i M n n i / M l i k ' l H 111 l l l i - 1 I H U ' i i
1'nsilii'ii Jiiil ji.r. IIICHIN.
Hen
NUHL'V
I'WH-ty?
% uf il<-
Billions of
US. dollar*
Billions o f dollars
Percent
ToUd
79&S
100
KIM
— 80
Ciradtt...
91.6
399.6
142.6
11
50
13
h(HI
60
United Kingdom
Latin America and
the Caribbean
•MM)
— 40
144.2
18
AiJa
Japan . .
OawAsta
106.1
39.6
66.5
13
5
8
21HJ
— 20
AustralUaod New Zealand
34.3
4
Other
20.7
3
—o
I
I
I
I
I
I
1 I
1985
I I
1989
Payments — • •
I I I I I I I I
1993
1997
NOTE. See note to chart 8.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis; and
Federal Reserve Board.
NOTE. Valued ai historical cost.
a result of strong U.S. growth and high corporate
profits. Direct investment payments have not always
kept pace with the growth of foreign direct investment in the United States; between 1980 and 1993
the direct investment position increased sharply, but
payments showed no upward trend (chart 9).
The rate of return on foreign direct investment in
the United States remains low by any measure—far
below the rate of return earned by U.S. direct investors abroad. Three measures of rates of return can
be calculated. In each measure (shown in table 11),
receipts or payments reported by direct investors are
divided by estimates of the value of direct investment
assets outstanding during the year. Historical cost is
the price at which the assets were purchased; current
cost adjusts the historical accounting values for
inventories and plant and equipment to reflect movements in current replacement cost indexes; and market value adjusts the ownership position using general indexes of stock market prices. All attempts to
R . H c s u l r c i u n i .MI tiiiccl
I
1981
SOURCE. Department of Commerce, Bureau of Economic Analysis.
II.
I
estimate changes in the value of assets are imprecise
and do not take into account developments that may
be important to the value of specific investments.
As noted previously, the differential in rates of
return between U.S. direct investment abroad and
foreign direct investment in the United States has
mitigated the effect of the negative U.S. net investment position on net investment income. Two important issues are whether these reported differentials
are accurate and whether they are likely to persist.
Numerous factors have probably contributed to the
differential in reported rates of return. First, investments in many places overseas are more risky than
investments in the United States, so some differential
in rates of return should be expected. Moreover,
many foreign investors who participated in the rapid
increase in direct investment in the United States in
the late 1980s had limited experience with foreign
investments and made serious errors of judgment.
Particularly ill-fated were Japanese investments in
iinc^tincnl.
Percent
1990
1991
1992
1993
1994
1995
1996
1997
14.5
10.0
7.5
11.6
6.7
10.7
8.0
6.4
11.5
8.9
6.7
11.8
9.4
6.7
13.3
10.7
7.6
13.1
10.7
6.9
12.8
10.6
6.9
i l l r t n r i i i i l JWULM*
.8
.6
Market value
.5
-.8
-.7
-.6
1
.0
1.3
1.1
.8
4.2
3.5
2.6
5.7
4.9
3.4
5.4
4.6
2.8
6.1
5.3
3.2
Measure used in calculating theraleof return
US. investment abroad
Historical cost
Current cott,
Market value
•
8.3
Foreign imesiment in ike United States
NOTE. The rates of return are calculated as follows: The numerator is direct
investment receipts or payments, from the U.S. international transactions
accounts. The denominator is the average of year-end figures for the current and
previous year for the particular measure of the value of direct investment
position shown. The positions for year-end 1997 are constructed by adding (he
recorded direct investment flows during 1997 to the recorded year-end positions
for 1996.
For a discussion of the BEA's measure of "current cost" and "market value,"
see 1. Steven Landefeld and Ann M. Lawson, "Valuation of the US. Net
International Investment Position," Survey of Current Business, vol. 7] (May
1991), pp. 40-49.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S.
international transactions accounts and U.S. international investment position.
318
Federal Reserve Bulletin • May 1998
U.S. commercial real estate. In addition, both U.S.
and foreign corporations may succeed in using transfer prices to shift reported profits to countries with
lower tax rates despite efforts by the Internal Revenue Service to limit this practice.
10.
N o t p o r t f o l i o i i n v s l r i R ' n i : I ' o M l i u n Liiul i i i L i i u i i - ' . l l ) M )
l
)7
Billion! of dollars
miliMunTdoUun
Net Portfolio Investment Income
Portfolio investment income consists of dividends
and interest paid on a wide range of claims and
liabilities. Receipts and payments are estimated by
the Bureau of Economic Analysis (BEA) of the
Department of Commerce based on estimates of holdings, dividend-payout ratios, and interest rates. Net
portfolio income fell sharply in 1997, largely because
of growing U.S. net international indebtedness
(table 9). Over the past decade, the decline of net
income has closely mirrored the growth of the negative net portfolio investment position (chart 10).
I t I I I I I I I I I I I I I I
1981
im
1989
1993
NOTE. The net position for each year is the average of year-end positions for
the current and previous years. The year-end position for 1997 was constructed
by adding the recorded net portfolio investment flows during 1997 to the
recorded year-end position for 1996.
SOURCE. U.S. Department of Commerce. Bureau of Economic Analysis: and
Federal Reserve Board.
The survey was long overdue. The previous survey
of U.S. holdings of foreign securities was conducted
during World War II. The data on international capital flows that are gathered regularly by the Treasury
International Capital (or TIC) Reports cover only
purchases and sales of securities, not holdings. For
the past fifty years, the BEA has had to rely on
estimates of the value of U.S. holdings based on
cumulative capital flows since World War II and
estimates of changes in values. Estimates of holdings
made by this method are likely to be increasingly
inaccurate as time elapses.
Results of the Benchmark Survey of U.S.
Ownership of Foreign Lon^-lerni Securities
The data on net portfolio investment income were
revised in 1997 to take into account the newly available results of the Treasury Department's Benchmark
Survey of U.S. Ownership of Foreign Long-Term
Securities. These results indicated that official statistics had been significantly underestimating U.S. portfolio holdings of foreign equities and debt instruments with maturities longer than one year. As a
result, the U.S. net international investment position was correspondingly less negative, and U.S.
investment income slightly larger, than previously
indicated.
\Z.
l.'.N. liMi-j-kTin s i - ' u n r i l a ' s . I n c o u n t ! v o\
The results of the recent survey indicate that, at the
end of March 1994, U.S. residents held $304 billion
in foreign bonds and $567 billion in foreign equities
(table 12). Issuers from Canada and the other industrial countries accounted for most of the bonds held
by U.S. residents. Holdings of bonds issued by developing countries were very small, except for those
issuer, MLIJVII 3 1 . 1 W I
All securities
Equities
Couniry or area
Billions of
US. dollars
Percent
870
100
48
**,
108
399
120
12
46
14
BIiMBW
US. Mian
100
23
Buwpe
Bailed Kingdom
Australia
40
s?e
•«*
103
Lilta America
1...
rAsia.,
m
,...,
,.
...,.*„ ^..,,.,
...'•-«.••»'
,
...s,....,,,.^
SOURCE. U.S. Department of the Treasury.
we
•r
II
3
s?
10
4
92
31
13
10
•3'
151
99
27
18
9
191
131
60
22
15
7
3
4
1.7
9
3
i
27
23
3
3
U.S. International Transactions in 1997
issued by four Latin American countries: Mexico,
Argentina, Venezuela, and Brazil. About half of the
long-term debt securities were denominated in U.S.
dollars. Much smaller shares were accounted for by
the yen, deutsche mark, and Canadian dollar, and the
rest was spread across a wide variety of currencies.
However, these results are of limited use in assessing
the exchange rate exposure of U.S. investors because
exposures may be hedged. Analysis of bond holdings
by sector of issuer indicates that governments and
international organizations constituted the largest
category by far, accounting for more than 60 percent of the total. About one-third of reported holdings involved bonds issued by foreigners in the
United States.
Industrial countries also accounted for the bulk of
U.S. holdings of foreign equities. Two countries, the
United Kingdom and Japan, together accounted for
more than one-third of total U.S. holdings. However,
holdings of equities issued by entities in developing
economies were not negligible. Both Mexico and
Hong Kong were among the top ten issuers. More
than one-fourth of U.S. holdings was accounted for
by American Depository Receipts (ADRs)—stocks
that were specifically marketed to U.S. investors.
Comparison of the benchmark survey results for
the end of March 1994 with the BEA's earlier end-ofyear estimates for 1993 and 1994 indicate that the
BEA had been underestimating U.S. holdings by substantial amounts (table 13). Possible explanations for
these errors are numerous. First, TIC reporting of
purchases and sales of securities may have contained
errors and omissions. Over time, U.S. investors and
their fund managers have increasingly transacted
directly in foreign markets, thus bypassing the U.S.
financial intermediaries that form the core of the TIC
reporting system. To ensure adequate coverage, the
TIC reporting system has had to continually expand
its list of reporters, and at times, Treasury has been
slow to do so. Even if the TIC Reports covered
95 percent of net purchases, the omitted investments
would cumulate to substantial sums over an extended
period.
l.v
I S . liolilinys of foreign securities: Rarlier RF.A
estimates and benchmark survey results. 1443-94
Billions of dollars
Item
Earlier BEA estimates,
yeawmd
\m
AO fo«lgnsecurities
SSI
Bonds
Equities
248
303
332.
32*
Benchmark
survey results,
end of
March 1994
Second, the BEA's estimate of price changes may
be inaccurate because the TIC Reports do not provide
adequate information to identify with certainty the
country of issue, currency, or term of the securities
purchased. Moreover, the weights of various equities
in U.S. portfolios may not mirror stock market price
indexes that are readily available and used by the
BEA.
The BEA raised its estimates of U.S. holdings of
foreign securities at the end of 1994 more than
$330 billion (about 60 percent) in light of the results
of the benchmark survey. The BEA also revised its
estimates of U.S. holdings from 1985 forward. The
revisions to holdings of equities were much larger
(both in dollar and percentage terms) than the revisions to holdings of bonds. Moreover, the benchmark
survey results indicate that the BEA's methodology
had produced large errors in the estimated distribution of bond holdings by country and currency. In
particular, holdings of Japanese bonds were much
larger than estimated, as were holdings of foreigncurrency-denominated bonds.
Both the revision to the level of holdings and the
change in composition had implications for the
BEA's estimates of investment income for the period
1985 to the present. The BEA's revisions to investment income receipts in 1994 as a result of the
benchmark survey amounted to an increase of about
$10 billion. The revision to income was small relative to the revision to holdings for two reasons. First,
the bulk of the revision in the estimated position involved estimated holdings of equities, and
dividend-payout ratios for foreign stocks tend to be
low. (Capital gains are excluded from investment
income in these accounts.) Second, the survey
indicated larger holdings of foreign-currencydenominated bonds than the BEA had previously estimated, particularly low-yielding, yendenominated bonds.
The BEA made no revisions to the published data
on capital flows as a result of the benchmark survey.
The BEA could not determine whether the errors in
the estimates of holdings were the result of unreported net purchases of foreign securities or errors in
its estimates of valuation changes over the previous
half a century; moreover, the BEA had no basis
for determining the dates of unreported securities
transactions.
m
CAPITAI, ACCOUNT TRANSACTIONS
m
Foreign ownership of assets in the United States and
U.S. ownership of assets abroad both rose signifi-
SS7
SOURCE. U.S. Department of Commerce and Department of (he Treasury.
319
320
Federal Reserve Bulletin • May 1998
cantly in 1997, an increase reflecting the continuing
trend toward the globalization of financial markets as
well as goods markets. Direct investment flows (both
inward and outward) and private purchases of U.S.
securities were particularly strong. Evidence of the
gathering financial storm in Asia was apparent in U.S.
capital flows mainly during the last quarter.
In 1997, in contrast to earlier years, increases in
foreign official holdings in the United States did not
play a major role in the capital flows that are the
counterpart to the current account deficit (table 14).
Foreign official assets in the United States rose
$45 billion in the first three quarters of 1997, below
the pace for 1996; the increases were concentrated in
the assets of certain industrial countries and members
of OPEC. In the fourth quarter, foreign official assets
declined sharply; the declines were concentrated in
assets of Asian countries and of several developing countries outside Asia that were experiencing
exchange market pressures. For the year as a whole,
foreign official holdings in the United States rose
only $18 billion.
In contrast, increases in the assets of other foreigners in the United States in 1997 about equaled or
surpassed previous records. Net purchases of U.S.
stocks were particularly strong—a record $67 billion.
Net purchases of U.S. Treasury bonds by private
foreigners remained robust; more than $30 billion of
U.S. Treasury securities were purchased in October
alone, when developments in Asia led to a flight to
quality. As the end of the year approached, however,
14.
some foreign private holdings of U.S. Treasury securities were liquidated. In addition, foreign direct
investment in the United States amounted to a new
high of $108 billion, as the strong pace of mergers
and acquisitions across national borders continued.
U.S. direct investment abroad in 1997 also reached
a record net outflow—$119 billion. U.S. net purchases of foreign securities in the first three quarters
were $76 billion, a little below the pace for 1996;
however, net purchases fell sharply in the fourth
quarter, probably in reaction to the perceptions of
higher risk arising from financial turmoil in Asia.
Banks in the United States reported a large increase
in net claims on foreigners in the first three quarters
of the year, but these outflows were largely reversed
toward the end of the year.
With net recorded capital inflows to the United
States exceeding the large U.S. current account deficit
in 1997, the U.S. international accounts recorded a
large negative statistical discrepancy for the second
year in a row (table 14). This negative discrepancy
indicates that net payments in the current account or
net outflows in the capital account have been unrecorded. For example, illegal drug imports would
contribute to a negative discrepancy, as would unrecorded investments abroad by U.S. residents or
overstated capital inflows. Although the statistical
discrepancy in the U.S. accounts tended to be positive
in the years before 1990, large negative discrepancies
have become more common since then for reasons
that are not well understood.
C o m p o s i t i o n n[ I'.S. capital tlnws, I W 3 -l>7
Billions of dollars
1994
1995
1996
1997
Change,
1996to1997
^91
-134
-129
-1*8
-166
-48
70
72
45
40
5
0
«0
128
17
til
-10
-I
122
7
-I
18
-1
-111
-104
-8
1
44
m
246
Item
Current account balance.
OSd*l capital, net
Foreign official mete in the United States.
US. officiaiitserve assets
OtherUS, government assets
Privatecapitai.net
Neiinffiowf.nqmrtedby US. banking offices .,...
Securities tranMetkma, net
Mvfcle foreign net purchases of US. securities .
stock*
urities
Stocks
Bonds
OtrectktwslniBntfset , , . . . . , . .
>..
Foceigi direct investment in the United States...
US. direct invettment abroad
Foreign holdinip of VS. currency
_
Other
1
15
56
-44
102
24
59
19
•J4
-45
95
196
OT
82
14
-M
-©
-60
-48
-12
-100
-30
-87
n
-24
46
-69
23
-39
-3
-15
-«3
-27
49
-76
19
Statistical discrepancy
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S.
international transactions accounts.
91
100
31
91
34
-80
-19
m12
0
lgl
0
-9
273
77
-88
17
-12
352
163
122
67
-79
-38
-41
-12
108
-119
25
-32
-47
-97
iw
156
121
13
-108
179
79
92
62
7
1
54
29
21
8
-1
31
-31
7
0
-50
U.S. International Transactions in 1997
PROSPECTS FOR
The fallout from the Asian crises is likely to have
further consequences for U.S. international transactions in 1998. Until the economies of the countries
directly affected begin to rebound, U.S. transactions
with them, including exports of goods and services
and the profits of direct investors, are likely to be
depressed. The negative ramifications of the Asian
crises for other trading partners may depress their
321
demand for U.S. exports as well. The recent appreciation of the dollar and the associated loss in competitiveness of U.S. goods and services is also likely to
continue to have a negative effect on the U.S. trade
balance in 1998. On the other hand, continued strong
growth in Latin America, Canada, and Western
Europe, which account for the bulk of U.S. exports
and direct investment, would tend to counteract the
negative repercussions of Asian developments.
•
322
Industrial Production and Capacity Utilization
for March 1998
Released for publication April 17
Industrial production increased 0.2 percent in March;
revised estimates of output now show declines of
0.2 percent in both January and February. The output
of utilities jumped in March as temperatures throughout the country returned to more normal levels. The
output of mines rose 0.2 percent, while production in
manufacturing slipped 0.2 percent for the second
consecutive month. At 127.7 percent of its 1992
average, total industrial production in March was
4.3 percent higher than it was in March 1997. For the
first quarter as a whole, output grew about 1 percent
at an annual rate. The rate of industrial capacity
utilization decreased 0.1 percentage point in March,
to 82.2 percent.
Industrial production indexes
Ralio scale, 1992= 100
Ratio scale, 1992 = 100
_
Consumer goods
-
130
_
Intermediate products
130
/~-v\yA
120
Durable
120
Construction supplies
/
110
110
Nondurable
i
_
i
i
1
1
1
-
100
-
90
1
1
Equipment
150
Business
-
-Defense and space
I
1990
I
I
I
1992
Capacity utilization
1994
I
\
1
-
90
1
Materials
1
^
1
^
150
x
130
130
110
—
90
-
Durable goods
y ^
____,
^ - ~
Nondurable goods
and energy
- 110
—
-
90
- ^ ^ _
I
1
1996
1990
1998
1
1
1992
1
1994
II
1996
1998
Percent of capacity
Percent of capacity
-
85
-
85
-
75
-
75
1984
1986
1988
1990
1992
1994
1996
1998
1984
1986
1988
All series are seasonally adjusted. Latest series, March. Capacity is an index of potential industrial producLion.
1
1
100
^ ^ - ^
-
N
_
1
Business supplies —
1990
1992
1994
1996
1998
323
Industrial production and capacity utilization, March 1998
Industrial production, index. 1992=101)
Category
4.3
Tolal .
Previous estimale ..
Major marker groups
Products, total'
Consumer goods
Business equipment
Construction supplies
Materials
121.0
115.9
148.6
123.2
138.9
121.2
116.6
147.6
124 0
138.1
120.9
115.6
147.0
125.3
138.0
120.9
115.7
146.8
124.0
138.7
-.1
-.6
.8
-.3
.9
.2
.6
-.7
.6
-.6
-.3
-.9
-.4
1.1
.0
Major induslrv groups
Manufacturing
Durable
Nondurable
Minins
Utilities
130.9
148.6
112.9
105.7
114.3
131.0
148.2
113.3
107.4
110.0
130.7
148.2
112.8
107.3
110.1
130.4
147.9
112.5
107.5
115.4
.4
.6
.2
-.4
-.9
.0
-.3
.4
1.7
_2
.0
-.4
-3.8
.0
.1
-.1
-1.0
.5
3.4
2.0
6.R
1.4
5.6
__ 2
4.4
6.6
1.9
4.8
.7
5.3
MF.MO
Capacity utilization, percent
Average,
1967-97
Total
Low.
1982
1997
1997
Mar.
Dec.
Jan.'
Feb.r
Mar. P
Capacity.
percentage
change.
Mar. 1997
to
Mar. 1998
82.2
4.7
80.9
79.1
85.2
90.8
90.5
5.4
6.3
3.4
.6
1.2
82.1
71.1
85.4
82.5
8.1.3
82.8
82J
83.2
83.0
82.7
81.1
80.5
82.4
87.5
87.3
69.0
70.4
66.2
80.3
75.9
85.7
84.2
88.9
S8.0
92.6
81.6
79.7
86.1
90.6
87.0
82.3
80.5
86.3
89.4
89.9
82.0
80.2
86.0
90.8'
86.4
81.5
79.5
85.7
90.6
86.4
Previous estimate
Manufacturing
Advanced processing
Primary processing ..
Mining
Utilities
NOTE. Data seasonally adjusted or calculated from seasonally adjusted
monthly data.
1. Change from preceding month.
MARKET GROUPS
The production of consumer goods remained flat, as
declines of 0.4 percent in the output of durable consumer goods and of non-energy nondurable goods
were offset by an increase of 3.3 percent in the output
of energy goods, most notably sales of residential
electricity and gas. The falloff was widespread within
durable consumer goods. The output of automotive
products and furniture declined again, and the production of household appliances dropped somewhat
from the high level in February. Among non-energy
nondurable consumer goods, the production of
both clothing and paper products dropped more than
1 percent.
The output of business equipment slowed in the
first quarter, edging down 0.1 percent in March after
having dropped 0.7 percent in January and 0.4 percent in February. Nonetheless, the production of busi
1998
High,
1988-89
2. Contains components in addition to those shown,
r Revised,
p Preliminary.
ness equipment was still 6.8 percent above the level
of a year ago. In March, continued strength in the
production of computer and office equipment was
more than offset by decreases in the assemblies of
motor vehicles and aircraft and in the output of
communications equipment.
The production of construction supplies declined
1.0 percent after having increased 1.1 percent in
February; output remains well above its level at the
end of last year. The output of materials increased
0.5 percent after two months of weakness, but the
level of output in March was still slightly below the
December level. While the production of durable and
nondurable goods materials edged down, the output
of energy materials increased sharply. Among durable goods materials, the output of parts for consumer
goods, which had spiked up in the fourth quarter,
dropped back, on balance, in the first quarter. Growth
in the output of equipment parts, which include parts
for high-technology equipment, has slowed recently.
324
Federal Reserve Bulletin • May 1998
INDUSTRY GROUPS
The output at durable and nondurable goods producers declined 0.2 percent. Within durables, increases
in computer and office equipment, semiconductors,
and instruments were offset by weakness elsewhere.
In particular, the output of primary metals; stone,
clay, and glass products; furniture and fixtures; and
transportation equipment posted significant losses.
Among nondurable industries, production fell in
every major industry, except petroleum and chemical
products.
The operating rate in manufacturing declined to
80.9 percent. Utilization rates in advanced-processing
and primary-processing industries fell for the third
consecutive month. The operating rate in advancedprocessing industries in March was 1.4 percentage
points below its long-run average, whereas the utilization rate in primary-processing industries was still
significantly above its long-run average.
•
325
Statements to the Congress
Statement by Alan Greenspan, Chairman, Board of
Governors of the Federal Reserve System, before the
Subcommittee on Foreign Operations of the Committee on Appropriations, U.S. Senate, March 3,1998
The global financial system has been evolving rapidly in recent years. New technology has radically
reduced the costs of borrowing and lending across
traditional national borders, facilitating the development of new instruments and drawing in new players.
Information is transmitted instantaneously around the
world, and huge shifts in the supply and demand for
funds naturally follow, resulting in a massive increase
in capital flows.
This burgeoning global system has been demonstrated to be a highly efficient structure that has
significantly facilitated cross-border trade in goods
and services and, accordingly, has made a substantial
contribution to standards of living worldwide. Its
efficiency exposes and punishes underlying economic
imprudence swiftly and decisively. Regrettably, it
also appears to have facilitated the transmission of
financial disturbances far more effectively than ever
before.
Three years ago, the Mexican crisis was the first
such episode associated with our new high tech international financial system. The current Asian crisis is
the second.
We do not as yet fully understand the new system's
dynamics. We are learning fast and need to update
and modify our institutions and practices to reduce
the risks inherent in the new regime. Meanwhile, we
have to confront the current crisis with the institutions and techniques we have.
Many argue that the current crisis should be
allowed to run its course without support from the
International Monetary Fund (IMF) or the bilateral
financial backing of other nations. They assert that
allowing this crisis to play out, while doubtless having additional negative effects on growth in Asia, and
engendering greater spillovers onto the rest of the
world, is not likely to have a large or lasting impact
on the United States and the world economy.
They may well be correct in their judgment. There
is, however, a small but not negligible probability
that the upset in East Asia could have unexpectedly
large negative effects on Japan, Latin America, and
eastern and central Europe that, in turn, could have
repercussions elsewhere, including the United States.
Thus, while the probability of such an outcome may
be small, its consequences, in my judgment, should
not be left solely to chance. We have observed that
global financial markets, as currently organized, do
not always achieve an appropriate equilibrium, or at
least require time to stabilize.
Opponents of IMF support for member countries
facing international financial difficulties also argue
that such substantial financial backing, by cushioning
the losses of imprudent investors, could encourage
excessive risk-taking. There doubtless is some truth
in that, though arguably it has been the expectation of
governments' support of their financial systems that
has been the more obvious culprit, at least in the
Asian case. In any event, any expectations of broad
bailouts have turned out to have been disappointed.
Many if not most investors in Asian economies have
to date suffered substantial losses. Asian equity
losses, excluding Japanese companies, since June
1997, worldwide, are estimated to have exceeded
$700 billion, at the end of January, of which more
than $30 billion had been lost by U.S. investors.
Substantial further losses have been recorded in
bonds and real estate.
Moreover, the policy conditionally, associated
principally with IMF lending, which dictates economic and financial discipline and structural change,
helps to mitigate some of the inappropriate risktaking. Such conditionality is also critical to the
success of the overall stabilization effort. At the root
of the problems is poor public policy that has resulted
in misguided investments and very weak financial
sectors. Convincing a sovereign nation to alter
destructive policies that impair its own performance
and threaten contagion to its neighbors is best
handled by an international financial institution, such
as the IMF. What we have in place today to respond
to crises should be supported even as we work to
improve those mechanisms and institutions.
Some observers have also expressed concern about
whether we can be confident that IMF programs for
countries, in particular the countries of East Asia, are
likely to alter their economies significantly and permanently. My sense is that one consequence of this
Asian crisis is an increasing awareness in the region
326
Federal Reserve Bulletin • May 1998
that market capitalism, as practiced in the West,
especially in the United States, is the superior model;
that is, it provides greater promise of producing rising standards of living and continuous growth.
Although East Asian economies have exhibited
considerable adherence to many aspects of free
market capitalism, there has nonetheless been a
pronounced tendency toward government-directed
investment, using the banking system to finance that
investment. Given a record of real growth rates
of close to 10 percent per annum over an extended
period of time, it is not surprising that it has been
difficult to convince anyone that the economic system
practiced in East Asia could not continue to produce
positive results indefinitely. After the breakdown, an
increasing awareness, bordering in some cases on
shock, that their economic model was incomplete, or
worse, has arguably emerged in the region.
As a consequence, many of the leaders of these
countries and their economic advisers are endeavoring to move their economies much more rapidly
toward the type of economic system that we have in
the United States. The IMF, whatever one might say
about its policy advice in the past, is trying to play a
critical role in this process, providing advice and
incentives that promote sound money and long-term
stability. The IMF's current approach in Asia is fully
supportive of the views of those in the West who
understand the importance of greater reliance on market forces, reduced government controls, scaling back
of government-directed investment, and embracing
greater transparency—the publication of all the data
that are relevant to the activities of the central bank.
the government, financial institutions, and private
companies.
It is a reasonable question to ask how long this
conversion to embracing market capitalism in all
its details will last in countries once temporary IMF
support is no longer necessary. We are, after all,
dealing with sovereign nations with long traditions
not always consonant with market capitalism. There
can be no guarantees, but my sense is that there is a
growing understanding and appreciation of the benefits of market capitalism as we practice it—that what
is being prescribed in IMF programs fosters their
own interests.
The just-inaugurated president of Korea, from what
I can judge, is unquestionably aware of the faults of
the Korean system that contributed to his country's
crisis; he appears to be very strenuously endeavoring
to move his economy and society in the direction of
freer markets and a more flexible economy. In these
efforts, he and other leaders in the region with similar
views have the support of many younger people, a
large proportion educated in the West, who see the
advantages of market capitalism and who will soon
assume the mantle of leadership.
Accordingly, I fully back the Administration's
request to augment the financial resources of the IMF
by approving as quickly as possible U.S. participation
in the New Arrangements to Borrow and an increase
in the U.S. quota in the IMF. Hopefully, neither will
turn out to be needed, and no funds will be drawn.
But it is better to have it available if that turns out not
to be the case and quick response to a pending crisis
is essential.
Statement by Laurence H. Meyer, Member; Board of
Governors of the Federal Reserve System, before the
Committee on Banking, Housing, and Urban Affairs,
U.S. Senate, March 3, 1998
balances distort market prices and lead to economically wasteful efforts to circumvent them.
Because of recent financial market innovations, the
proposals are also important for monetary policy.
Balances that depository institutions must hold at
Federal Reserve Banks to meet reserve requirements
pay no interest. Reserve requirements are now 10 percent of all transaction deposits above a threshold
level. Requirements may be satisfied either with vault
cash or with balances held in accounts at Federal
Reserve Banks. Depositories have naturally always
attempted to reduce such non-interest-bearing balances to the minimum. For more than two decades,
some commercial banks have done so in part by
sweeping the reservable transaction deposits of businesses into nonreservable instruments. These business sweeps not only avoid reserve requirements but
also allow firms to earn interest on instruments that
are, effectively, equivalent to demand deposits.
I welcome the opportunity to testify on behalf of the
Federal Reserve Board on proposals in S. 1405 to
allow the payment of interest on demand deposits and
on the required reserve balances of depositories at the
Federal Reserve. The Federal Reserve strongly supports these measures. We have commented favorably
on such proposals on a number of previous occasions
over the years, and the reasons for those positions
still hold today. We also believe the legislation should
include a provision to allow the Federal Reserve to
pay interest on excess reserves.
These legislative proposals are important for
economic efficiency: Unnecessary restrictions on the
payment of interest on demand deposits and reserve
Statements to the Congress
In recent years, developments in computer technology have allowed depositories to begin sweeping
consumer transaction deposits into nonreservable
accounts. In consequence, the balances that depositories hold at Reserve Banks to meet reserve requirements have fallen to quite low levels. These consumer sweep programs are expected to spread further,
threatening to lower required reserve balances to
levels that may begin to impair the implementation
of monetary policy. Should this occur, the Federal
Reserve would need to adapt its monetary policy
instruments, which could involve disruptions and
costs to private parties as well as to the Federal
Reserve. However, if interest were allowed to be paid
on required reserve balances and on demand deposits,
changes in the procedures used for implementing
monetary policy might not be needed.
The prohibition of the payment of interest on
demand deposits was enacted in the depression atmosphere of the mid-1930s. At that time, the Congress
was concerned that large money center banks might
have earlier been bidding deposits away from country
banks to make loans to stock market speculators, in
the process depriving rural areas of financing. It is
unclear whether the rationale for this prohibition was
ever valid, and it is certainly no longer applicable
today. Funds flow freely around the country, and
among banks of all sizes, to find the most profitable
lending opportunities, using a wide variety of market
mechanisms, including the federal funds market.
The absence of interest on demand deposits is no
bar to the movement of funds from depositories
with surpluses—whatever their size or location—to
the markets where the funding can be profitably
employed. In fact, small firms in rural areas are able
to bypass their local banks and invest in money
market mutual funds with transaction capabilities.
Indeed, smaller banks complain that they are unable
to compete for the deposits of businesses precisely
because of their inability to offer interest on demand
deposits.
The prohibition of interest on demand deposits
distorts the pricing of transaction deposits and associated bank services. In order to compete for the liquid
assets of businesses, banks set up complicated procedures to pay implicit interest on what are called
compensating balance accounts. These accounts,
which represent a sizable fraction of demand deposits, earn credits that can be used to pay for a firm's
use of other bank services. Banks also spend
resources—and charge fees—for sweeping the excess
demand deposits of businesses into money market
investments on a nightly basis. To be sure, the
progress of computer technology has reduced the cost
327
of such systems over time. However, the expenses are
not trivial, particularly when substantial efforts are
needed to upgrade such automation systems or to
integrate the diverse systems of merging banks. Such
expenses waste the economy's resources—they
would be unnecessary if interest were paid on both
demand deposits and the reserve balances that must
be held against them.
The prohibition of interest on demand deposits also
distorts the pricing of other bank products. Because
banks cannot attract demand deposits through the
payment of explicit interest, they often try to attract
these deposits, aside from compensating balances,
through the provision of services at little or no cost.
When services are offered below cost, they tend to be
overused—an additional waste of resources attributable partly to the prohibition of interest on demand
deposits.
However, the potential gains in economic efficiency cannot be fully realized by paying interest on
demand deposits alone. As has been demonstrated
in the case of the consumer checking accounts, on
which interest is paid, the absence of interest on the
reserve balances that must be held against such transaction deposits has in itself provided strong enough
incentive for banks to start sweep programs. The
costs that banks incur to design and maintain the
automation systems needed to implement such sweep
programs are another instance of economic waste.
The payment of interest on required reserve balances could remove the incentives to engage in such
reserve avoidance practices.
In light of depositories' use of resources to try to
circumvent reserve requirements, the reason for having such requirements might be questioned. Indeed,
reserve requirements have been eliminated in a number of other industrialized countries. Let me review
with you for a few moments the historical and current
purposes served by reserve requirements.
Although the English word "reserves" might
imply an emergency store of liquidity, required
reserves cannot actually be used for this purpose
because they represent a small and fixed fraction of
a bank's transaction deposits. Reserve requirements
have at times been employed as a means of controlling the growth of money. In the early 1980s, for
example, the Federal Reserve used a reserve quantity
procedure to control the growth of M l . For the most
part, however, the Federal Reserve has looked to the
price of reserves—the federal funds rate—rather than
the quantity of reserves, as its key focus in implementing monetary policy.
Although reserve requirements no longer serve the
primary purpose of monetary control, they continue
328
Federal Reserve Bulletin • May 1998
to play an important role in the implementation of
monetary policy in the United States. They do so by
helping to keep the federal funds rate close to the
target rate set by the Federal Open Market Committee. They perform this function in two ways: First,
they provide a predictable demand for the total
reserves that the Federal Reserve needs to supply
through open market operations in order to achieve
a given federal funds rate target. Second, because
required reserve balances must be maintained only on
an average basis over a two-week period, depositories have some scope to adjust the daily balances
they hold in a manner that helps stabilize the federal
funds rate. For instance, if the funds rate were higher
than usual on a particular day, depositories could
choose to hold lower reserve balances, and their
reduced demand would help to damp the upward
pressure on the funds rate. Later in the two-week
period, they could make up the shortfall in their
average holdings of reserve balances.
Depositories hold balances in their accounts at
Federal Reserve Banks for reasons other than satisfying their two-week average requirements. Some balances are needed as a precaution against the chance
that payment orders late in the day might leave a
depository with an overdraft on its account, and the
Federal Reserve strongly discourages overdrafts. On
days when payment flows are particularly heavy and
uncertain, or when the distribution of reserves is
substantially displaced from normal, depositories
tend to hold balances for precautionary purposes well
above required levels.
Unlike the two-week average demands, these daily
precautionary demands cannot help smooth the funds
rate from one day to the next. They are also difficult
to predict, making it harder for the Federal Reserve to
determine the appropriate daily quantity of reserves
to supply to the market. In the absence of reserve
requirements, or if reserve requirements were very
low, the daily demand for balances at Reserve Banks
would be dominated by these precautionary demands,
and as a result, the federal funds rate could often
diverge markedly from its intended level.
An example of the volatility that can arise in the
federal funds market because of a low level of
required reserve balances occurred in early 1991. The
Federal Reserve had reduced certain reserve requirements in late 1990 as a means of easing funding costs
to banks during the credit crunch period. The cut in
requirements reduced required balances at Reserve
Banks for many depositories to below the balances
needed for precautionary purposes, and the federal
funds rate consequently became very volatile. On a
typical day in that period, the funds rate strayed over
a range of about 8 percentage points and missed the
target for the average of daily rates by Vi percentage
point. After a couple of months, stability returned to
the federal funds market because depositories made
improvements in their reserve management and
because strong growth in deposits again boosted the
level of required reserve balances above precautionary demands for many institutions.
Since that time, depositories have become much
more adept at managing their reserve positions, and
their need for precautionary balances on a typical day
has declined considerably. In fact, they are now managing to operate with lower aggregate required balances at Reserve Banks than they had in early 1991,
and the federal funds rate is nevertheless much more
stable. A number of measures taken by the Federal
Reserve have helped to foster stability, including
improvements in the timeliness of account information provided to depositories, more frequent open
market operations geared to daily payment needs,
and improved procedures for estimating reserve
demand. Another measure now being considered by
the Federal Reserve Board is a shift to lagged reserve
requirements, which would also contribute to some
reduction in uncertainty about reserve demand.
The additional improvements in reserve management in recent years have been needed because required reserve balances have dropped substantially—
from about $28 billion in late 1993 to about
$9 billion in late 1997. This decline has not occurred
because of further cuts in required reserve ratios by
the Federal Reserve but because of the new retail
sweep programs implemented by depositories. These
programs use computerized systems to sweep consumer transaction deposits, which are subject to
reserve requirements, into personal savings accounts,
which are not. The spread of such retail sweep programs has not yet fully run its course, and considerable uncertainty shrouds its eventual outcome. We
expect that the effects of future declines in required
reserve balances on the volatility of the federal funds
rate will not necessarily proceed gradually; the rather
modest effects on volatility seen so far may not
preclude a more outsized reaction as reserve balances
fall even lower.
Heightened volatility in the federal funds rate is
of concern for a number of reasons. To be sure, the
transmission of volatility in the funds rate to volatility in longer-term rates is likely to be muted because
of the averaging out of upticks and downticks in the
overnight rate. However, even in the absence of much
transmission to longer-term rates, increased volatility
in the federal funds rate would affect other overnight
interest rates, raising funding risks for most large
Statements to the Congress
banks, securities dealers, and other money market
participants. Suppliers of funds to the overnight markets, including many small banks and thrift institutions, would face greater uncertainty about the returns
they would earn. Market participants concerned about
unexpected losses would incur additional costs in
managing their funding to limit the heightened risks.
Countries that have eliminated reserve requirements do not generally experience a great deal of
volatility in overnight interest rates because they are
able to use alternative procedures for the implementation of monetary policy. One type of procedure, for
instance, establishes a ceiling and a floor to contain
movements of the overnight interest rate. The ceiling
is set by a penalty interest rate on loans provided
freely by the central bank through what is called a
Lombard facility. The floor is established, in effect,
by the payment of interest on excess reserves because
no bank would lend to a private party at an interest
rate below the rate it could earn on a risk-free deposit
at the central bank. For the Federal Reserve to be able
to set a similar interest rate floor, it would need
authority to pay interest on excess reserves. As
regards a ceiling on the funds rate, a change in the
Federal Reserve's approach to the discount window
would be necessary because we have no penalty
interest rate and instead subject borrowing applications to an administrative review. Alternative means
of establishing a ceiling could be considered.
If interest were allowed to be paid on both demand
deposits and required reserve balances, adjustments
in the procedures for implementing monetary policy
might not be needed. Such interest payments would
likely boost the level of transaction deposits substantially, as some business and household sweep programs were unwound, and as banks became more
able to compete for the liquid funds of businesses.
The increased transaction deposits could ensure that
required reserve balances would remain above the
level of daily precautionary needs for many institutions, thus helping to stabilize the federal funds rate,
while also improving economic efficiency as previously noted.
The magnitude of the prospective responses to
these measures is uncertain, however. Some corporations may not find the interest paid on demand deposits high enough to induce them to shift out of other
liquid instruments. Also, some banks may retain consumer sweep programs in order to seek higher investment returns than the Federal Reserve would pay on
reserve balances. If interest were allowed on required
reserve balances, the Federal Reserve would likely
pay a rate close to the rate available on an overnight
repurchase agreement. Higher yields are, of course,
329
available on investments of greater risk and longer
maturities.
Because of the uncertainties involved, the Federal
Reserve needs to be able to pay interest on excess
reserves as well as on required reserve balances, and
at differential rates to be set by the Federal Reserve.
The ability to pay interest on excess reserves would
provide an additional tool that could be used for
monetary policy implementation, but one that might
not need to be used, if interest on required reserve
balances and demand deposits resulted in a sufficient
boost to the level of those balances. Even if not used
immediately, it is important that the Federal Reserve
have the full range of tools available to other central
banks, given the inventiveness of our financial markets and the need for the Federal Reserve to be
prepared for potential developments that may not be
immediately visible.
The payment of interest on reserve balances would
tend to reduce the revenues received by the Treasury
from the Federal Reserve, while the payment of
interest on demand deposits would increase those
revenues. Treasury revenues would be directly
reduced by the payment of interest on existing reserve
balances. However, there would be some offset to this
direct revenue loss. The level of reserve balances
would rise because of the interest payments, and the
Federal Reserve would therefore be able to increase
its holdings of government securities. The Federal
Reserve, on average, would earn a higher yield on
those securities than the rate it would pay on required
reserve balances. On net, Treasury revenues are still
likely to fall with the payment of interest on required
reserve balances, but the recent declines in such
balances have reduced that revenue loss to a historic
low, roughly $100 million anually starting next
year, according to a recent estimate by the Congressional Budget Office. Similarly, interest payments on
demand deposits would increase the level of demand
deposits, as well as the reserve balances held against
them on which the Federal Reserve would also
earn a positive interest rate spread. The size of
this further offset to the Treasury's revenue loss on
required reserve balances is subject to considerable
uncertainty.
In the long run, the benefits of the proposed legislation will likely be distributed rather widely among
bank customers. The biggest winners should be small
businesses that currently earn no interest on their
checking accounts. They will gain from the interest
earned and from being able to relax procedures used
to hold to a minimum the size of their checking
account deposits. Larger firms will benefit as well, in
part by saving on some sweep fees.
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Federal Reserve Bulletin • May 1998
For banks, interest on demand deposits will
increase costs, at least in the short run. Larger banks
and securities firms may also lose some of the fees
they currently earn on sweeps of business demand
deposits. The higher costs to banks will be partially
offset by interest on reserve balances, and over time,
these measures should help the banking sector attract
liquid funds in competition with nonbank institutions
and direct market investments by businesses. Small
banks, in particular, should be able to bid for business demand deposits on a more level playing field
vis-a-vis both nonbank competition and large bank
sweep programs. Moreover, large and small banks
will be strengthened by fairer prices on the services
they offer and by the elimination of unnecessary costs
associated with sweeps and other procedures currently used to try to minimize the level of reserves.
In the early 1980s, the Congress decided to deregulate interest rates on all household deposits and
to allow money market deposit accounts for businesses. It is now time to extend the benefits of deposit
interest rate deregulation to the ordinary checking
accounts of businesses. Eliminating price distortions
on demand deposits and on required and excess
reserve balances would spare the economy wasteful
expenditure, increase the efficiency of our financial markets, and facilitate the conduct of monetary
policy.
Statement by Alan Greenspan, Chairman, Board of
Governors of the Federal Reserve System, before the
Committee on the Budget, U.S. House of Representatives, March 4, 1998
With the crisis curtailing the financing available in
foreign currencies, many Asian economies have had
no choice but to cut back their imports sharply from
the United States and elsewhere, a situation made
worse by disruptions to their financial systems and
economies more generally. American exports should
be held down further by the appreciation of the
dollar, which will make the prices of competing
goods produced abroad more attractive, just as
foreign-produced goods will be relatively more
attractive to buyers here at home. As a result, we can
expect a worsening net export position to exert a
discernible drag on total output in the United States
and the dollar prices of our non-oil imports to extend
their recent declines. These lower import prices are
apparently already making domestic producers hesitant to raise their own prices for fear of losing market
share, further contributing to the restraint on overall
prices.
The key question going forward is whether the
restraint building from the turmoil in Asia will be
sufficient to check inflationary tendencies that might
otherwise result from continued strength of domestic
spending and tightening labor markets. The depth of
the adjustment abroad will depend on the extent of
weakness in the financial sectors of Asian economies
and the speed with which structural inefficiencies in
the financial and nonfinancial sectors of those economies are corrected. If, as we suspect, the restraint
coming from Asia is sufficient to bring the demand
for American labor back into line with the growth of
the working-age population desirous of working,
labor markets will remain unusually tight, but any
intensification of inflation should be delayed, very
gradual, and readily reversible. However, we cannot
rule out two other, more worrisome possibilities. On
the one hand, should the momentum to domestic
spending not be offset significantly by Asian or other
Just last week I presented the Federal Reserve's
semiannual report on economic conditions and the
conduct of monetary policy. This morning, I will
briefly review some aspects of that outlook before I
turn to a more detailed discussion of coming budgetary challenges.
The exemplary performance of the U.S. economy
in 1997 will be hard to match. Last year's combination of robust expansion of activity, healthy creation
of new jobs, and a decline in inflation generated
widespread benefits for our citizens. Many of those
benefits have the promise to be long-lived: Our
nation has been experiencing a higher growth rate of
productivity—output per hour worked—in recent
years, which is the ultimate source of rising standards
of living.
There can be no doubt that domestic demand
retained some of its considerable momentum going
into this year. Production and employment have been
on a strong uptrend in recent months. Confident
households, enjoying gains in income and wealth and
benefiting from the reductions in intermediate- and
longer-term interest rates to date, should continue to
increase their spending. Firms should find financing
available on relatively attractive terms to fund profitable opportunities to enhance efficiency by investing
in new capital equipment. By itself, this strength in
spending would seem to presage intensifying pressures in labor markets and on prices. Yet, the outlook
for total spending on goods and services produced in
the United States is less assured of late because of
storm clouds massing over the Western Pacific and
heading our way.
Statements to the Congress
developments, the U.S. economy would be on a track
along which spending could press too strongly
against available resources to be consistent with contained inflation. On the other, we also need to be alert
to the possibility that the forces from Asia might
damp activity and prices by more than is desirable by
exerting a particularly forceful drag on the volume of
net exports and the prices of imports.
The robust economy has facilitated the efforts
of the Congress and the Administration to restore
balance in the unified federal budget. The deficit
dropped to its lowest level in more than two decades
in fiscal 1997, and both the Administration and the
Congressional Budget Office (CBO) now expect the
budget to remain essentially in balance over the next
few years before moving to moderate surpluses
by the middle of the next decade. I should caution,
though, that while receipt growth remained robust
through January, the prospects for fiscal 1998 as a
whole remain uncertain until we have a tally of the
final payments that will be included in April's tax
returns.
As I have indicated to the Congress on numerous
occasions, putting the unified budget into significant
surplus would be the surest and most direct way of
increasing national saving. In turn, higher national
saving, by promoting lower real long-term interest
rates, helps spur spending to outfit American firms
and their workers with the modern equipment they
need to compete successfully on world markets. We
have seen a partial down payment of the benefits of
better budget balance already: It seems reasonable
to assume that the decline in longer-term Treasury
yields last year owed, in part, to reduced
competition—current and prospective—from the
federal government for scarce private saving.
But much hard work remains to be done to ensure
that these projected surpluses actually materialize
and that the appropriate budgetary strategy is in place
to deal with the effects on federal entitlement spending of the looming shift in the nation's retirement
demographics. The baseline projections from the
Office of Management and Budget (OMB) and the
CBO provide a good starting point for assessing
the budget outlook over the medium term: They are
based on sensible economic and technical assumptions and thus offer a reasonable indication of how
the budget is likely to evolve if economic conditions
remain favorable and current budgetary policies
remain in place. However, the experience of the past
few years amply demonstrates that such forecasts are
subject to considerable error. For evidence on that
score, we need only look back to last winter. Even
with fiscal 1997 already well under way, both the
331
CBO and the OMB were overestimating that year's
deficit by about $100 billion.
In retrospect, much of the error in last winter's
deficit estimates fell on the inflow side, largely
reflecting a surge in tax receipts that far exceeded
estimates. This "tax surprise", which helped lift the
receipts share of gross domestic product to a historical high, was not a new phenomenon. In the early
1990s, growth of receipts consistently fell short of
expectations based on the trends in aggregate income
and the tax laws then in place. Even after the fact, our
knowledge about the sources of such surprises has
not always been definitive. As a result, we must
remain cautious about extrapolating recent favorable
tax inflows into the future. We cannot rule out the
possibility that the next few years will see a more
rapid dissipation of the strength in receipts than either
the OMB and the CBO have assumed, implying
renewed deficits. Indeed, all else equal, had the 1997
surprise fallen on the other side—downward instead
of upward—we would be confronted by nontrivial
budget deficits at least through the beginning of the
coming decade.
Moreover, the baseline projections assume that discretionary spending will be held to the statutory caps,
which allow almost no growth in nominal outlays
through fiscal 2002. Given the declining support for
further reductions in defense spending, keeping overall discretionary spending within the caps is likely to
require sizable, as yet unspecified, real declines in
nondefense programs from current levels. Not surprisingly, many observers are skeptical that the caps
will hold, and battles over appropriations in coming
years may well expose deep divisions that could
make the realization of the budget projections less
likely. In addition, although last year's legislation
cut Medicare spending substantially, experience has
highlighted the difficulty of controlling this program,
raising the possibility that the savings will not be so
great as anticipated—especially if resistance develops among beneficiaries or providers.
These uncertainties underscore the need for caution as you move ahead on your work on the 1999
budget. There is no guarantee that projected surpluses over the next few years will actually materialize. However, we can be more certain that, absent
action, the budgetary position will erode after the
next decade as the baby boom generation moves into
retirement, putting massive strains on the social security and Medicare programs. Without question, the
task of stemming that erosion will become increasingly difficult the longer it is postponed. Indeed,
especially in light of these inexorable demographic
trends, I have always emphasized that we should
332
Federal Reserve Bulletin • May 1998
be aiming for budgetary surpluses and using the
proceeds to retire outstanding federal debt. In that
regard, one measure of how much progress has been
made in dealing with the nation's fiscal affairs is that
serious discussion of such paydowns has begun to
surface. Working down the stock of the federal debt
would put further downward pressure on long-term
interest rates, which would enhance private capital
investment, labor productivity, and economic growth,
preparing us to better confront the looming changes
in retirement demographics.
Over the decades, our budgetary processes have
been biased toward deficit spending. Indeed, those
processes are strewn with initiatives that were viewed
as having only a small projected budgetary cost at
inception but which produced a sizable drain on the
Treasury's coffers over time. As you are well aware,
programs can be easy to initiate or expand but
extraordinarily difficult to trim or shut down once a
constituency develops that has a stake in maintaining
them. Thus far, the President and the Congress have
been quite successful, contrary to expectations, in
placing, and especially holding, caps on discretionary
spending. More recently, they have started to confront
the budget implications of the surge in retirements
that will occur early in the next century. But the good
news of late on the budget has unleashed an outpour-
ing of proposals that, if adopted, do not bode well for
the maintenance of fiscal discipline. Although many
of the individual budget proposals may have merit,
they must be considered only in the context of a
responsible budget strategy for the longer run.
In closing, I want to commend Chairman Kasich
and the members of the committee for your insistence
on fiscal responsibility and persistent efforts to bring
the budget under control. The shrinking budget deficit and the prospect of surplus stand as testimony to
your endeavors. But we must remember that projections of surpluses are based on an extrapolation of
steady economic growth and subdued inflation in
coming years. Achieving such a performance in these
uncertain times, with the U.S. economy now subject
to a fine balance of powerful forces of expansion and
restraint, will provide policymakers with a considerable challenge. And, on your part, not succumbing
to the temptation to commit prematurely future surpluses that exist only on paper, while, in addition,
addressing the adverse effects of ongoing demographic changes to the budget over the longer run,
will not be easy. However, if we meet these challenges, the increase in national saving and investment
will almost surely pay off handsomely in the form of
a more rapidly expanding standard of living for all
Americans.
Statement by Laurence H. Meyer, Member, Board of
Governors of the Federal Reserve System, before the
Committee on Banking, Housing, and Urban Affairs,
U.S. Senate, March 10, 1998
tory relief and may result in changes to the law that
were neither intended nor desired. In this testimony, I
would like to highlight some of the provisions that
the Board supports and some of the areas with which
the Board has concerns. (Attached to this statement is
an appendix containing several technical suggestions
and comments on other provisions of the bill that are
not discussed directly in my testimony.)'
The Board of Governors appreciates this opportunity
to comment further on S. 1405, the Financial Regulatory Relief and Economic Efficiency Act of 1997.
The members of this committee, and in particular
Senators Shelby and Mack, are to be commended
for the leadership role you have taken over the past
several years in reducing unnecessary burdens on our
nation's banking system. This committee has recognized that unnecessary regulatory burdens hinder the
ability of banking organizations to compete effectively in the broader financial services marketplace
and, ultimately, adversely affect the availability and
prices to consumers of banking services and credit
products.
This bill represents a further effort by this committee to eliminate unnecessary regulatory burdens. The
Board believes that a number of sections of this bill
accomplish that purpose, and it recommends their
adoption. Several other provisions, however, appear
inadvertently to have gone beyond the goal of regula
THE COMMITTEE'S PAST SUCCESSES
This committee has twice approved comprehensive
legislation to ease regulatory burdens for financial
institutions. As the Board stated at the time the committee was considering these prior legislative initiatives, the banking industry badly needed the type of
regulatory burden relief embodied in the Community
Development and Regulatory Improvement Act of
1. The attachment to this statement is available from Publications
Services, Mail Stop 127, Board of Governors of the Federal Reserve
System, Washington, DC 20551, or the Board's World Wide Web site,
http://www.bog.frb.fed.us/
Statements to the Congress
1994 (1994 Act) and in the Economic Growth and
Paperwork Reduction Act of 1996 (1996 Act).
Before the passage of these two acts, the aggregate
regulatory burden on our nation's banking organizations had become substantial. The Board supported
the efforts of the committee and voiced its concern
that obsolete and dysfunctional regulations were
handicapping the ability of U.S. banking institutions
to operate in increasingly competitive financial markets, both domestic and global. Taking heed of the
calls for regulatory reform from the Board and
others, this committee fashioned important legislation to revise anachronistic banking statutes that were
imposing costs without providing commensurate
benefits to the safety and soundness of financial institutions, consumer protection, or credit availability.
In the 1994 Act, the committee alleviated the
paperwork burden for banking organizations seeking
to gain federal approval to engage in certain transactions, enhanced the efficiency of the regulatory
process by eliminating applications and other filing
requirements, and streamlined examination and audit
procedures. Two years later, with the support of
the Board, the committee passed the 1996 Act, which,
among other steps, permitted well-capitalized and
well-managed institutions to commence previously
approved nonbanking activities without filing an
application. In the 1996 Act, the committee also
passed important reforms to consumer protection statutes that alleviated the burdens imposed by these
statutory provisions on financial institutions without
undercutting the goals of the consumer protection
laws.
OUR EFFORTS AT THE BOARD
The Board has long recognized that regulatory burdens on our nation's financial institutions must be
reduced. Consistent with the mandate of the Congress and this committee, the Board has sought to
ensure that regulatory requirements are imposed only
when they are needed to accomplish the statutory
responsibilities of the Board. For example, within the
past two years, the Board has substantially revised its
Regulation Y (which primarily governs bank holding
companies) and has proposed comprehensive revisions to its Regulation H (which governs membership
of state banks in the Federal Reserve System) and its
Regulation K (which governs international banking
operations). These changes will make the Board's
regulations simpler, less burdensome, and more transparent while still providing banking organizations
with powerful incentives to maintain strong capital
333
positions, preserve solid management, and serve the
needs of their communities.
The efforts of the Board, coupled with the mandates of this committee, have had a bottom-line,
practical effect: Fewer applications need to be filed
with the Board; and banking organizations have
saved substantial regulatory, legal, compliance, and
other costs. In short, these changes have enhanced the
competitiveness of banking organizations that are
regulated by the Board and have benefited the customers of these financial institutions.
The Provisions of This Bill
S. 1405 contains some important additional reform
provisions. As I stated before the committee last
week, the Board strongly supports the provision in
section 101 of this bill that would permit the Federal Reserve to pay interest on reserve balances that
depository institutions are required to maintain at
Federal Reserve Banks. Because required reserve
balances do not earn interest, banks and other depository institutions employ sweeps and other costly procedures to reduce such balances to a minimum. These
reserve avoidance techniques represent a waste of
resources for the economy and could also potentially
complicate the implementation of monetary policy.
Allowing the Board to pay interest on required
reserve balances would not only eliminate economic
inefficiencies but also alleviate risks that could affect
the future implementation of monetary policy. In
addition, as I mentioned last week, the Board would
support allowing the Federal Reserve the option to
make payment of interest on "excess" reserves,
which could be a useful tool for monetary policy.
The Board also strongly endorses the provision in
section 102 that would permit all depository institutions to pay interest on demand deposits, including
deposits made by businesses. As I explained more
fully last week, the prohibition of interest on the
demand accounts of businesses is an anachronism
that no longer serves any public policy purpose. On
the other hand, this prohibition imposes a burden
both on banks and on those holding demand deposits,
especially small businesses, which frequently do not
have the resources to implement sophisticated cash
management programs. Repeal of the prohibition
would remove an unnecessary regulatory burden,
enhance the competitiveness of depository institutions, and benefit bank depositors.
There are other parts of this bill, as well, that
would relieve regulatory burden without giving rise
to safety and soundness, supervisory, consumer pro-
334
Federal Reserve Bulletin • May 1998
tection, or other policy concerns. For example, section 203 would eliminate the outdated and largely
redundant requirement in section 11 (m) of the Federal Reserve Act, which currently sets a rigid ceiling
on the percentage of bank capital and surplus that
may be represented by loans collateralized by securities. Current national and state bank lending limits
address concerns regarding concentrations of credit
more comprehensively than section ll(m) but do so
without the unnecessary constraining effects of this
section of the Federal Reserve Act.
In another area, the alternative consumer credit
disclosure mechanisms permitted by sections 401 and
402 will be less burdensome to creditors and just as
helpful to consumers as the disclosure requirements
embodied in current law. The Congress has already
eliminated the requirement that creditors disclose a
historical table for closed-end variable rate loans.
Taking similar action with respect to open-end variable rate home-secured loans, and permitting creditors to make alternative disclosures to meet their
obligations with regard to credit advertising under the
Truth in Lending Act. would reduce regulatory burdens without sacrificing consumer protections.
The Board supports other sections of the bill as
well. Section 304, which would eliminate the banking agency report on differences in capital and
accounting standards, is a provision that would terminate a reporting requirement that is no longer necessary in light of the considerable progress the agencies
have made (at this committee's direction in the 1994
Act) in conforming their capital and accounting standards. Section 109 would provide a uniform limit on
loans by banks to their executive officers, thereby
diminishing confusion among regulated institutions
and reducing regulatory burden across institutions
with different regulators. Section 306, which would
eliminate the Thrift Depositor Protection Oversight
Board, would save the government money by terminating an administrative board whose primary function, oversight of the Resolution Trust Coiporation
(RTC), ceased when the RTC closed in 1995. Moreover, as discussed in the appendix, section 502 would
make an important change in the health benefits
available to Federal Deposit Insurance Corporation
and Board retirees.
A few other provisions of this bill, however, appear
to go beyond the committee's goal of regulatory
relief or represent such fundamental changes in the
federal regulatory system as to warrant a fuller debate
in the context of broad financial modernization legislation. The Board is concerned that these provisions,
as currently drafted, may result in changes to the law
that the committee did not intend and will have
effects that the committee may not desire. Some of
these changes may give certain entities unfair competitive advantages; other provisions appear to extend
taxpayer subsidies in a manner that would not seem
warranted.
Nonbank Banks
Several provisions of S. 1405 would eliminate a
number of important limitations that have been
applied to nonbank banks. For example, section 208
would greatly enhance the ability of nonbank banks
to expand their banking operations by allowing them
to acquire any undercapitalized bank. Section 116
would allow nonbank banks to permit their affiliates
to incur overdrafts at the nonbank bank and would
allow nonbank banks to incur overdrafts at the Federal Reserve on behalf of affiliates. This section also
would remove restrictions in current law on the crossmarketing of products by nonbank banks and their
commercial affiliates. Section 205 would allow nonbank banks to offer business credit cards even where
these business loans are funded by insured demand
deposits. Finally, section 117 would liberalize the
divestiture requirements that apply when companies
violate the nonbank bank operating limitations.
Eliminating restrictions on nonbank banks, at first
glance, may have intuitive appeal. However, there are
important reasons why the Board is concerned about
these provisions. Nonbank banks—which, despite
their popular name, are federally insured, national
or state-chartered banks—came into existence by
exploiting a loophole in the law. By means of this
loophole, industrial, commercial, and other companies were able to acquire insured banks and to mix
banking and commerce in a manner that was then,
and remains today, statutorily prohibited for banking
organizations. These companies also have avoided
the comprehensive framework of prudential standards and supervisory examination and review under
the Bank Holding Company Act that governs all
other corporate owners of insured banks.
In 1987, in the Competitive Equality Banking Act
(CEBA), the Congress closed the nonbank bank
loophole. At that time, the Congress chose not to
require the fifty-seven companies operating nonbank
banks to divest these institutions. Instead, the Congress permitted the companies owning these banks to
retain their ownership as long as they complied with
a carefully crafted set of limitations on the activities
of nonbank banks and their parents. In a unique
statutory explanation of legislative purpose, the Congress stated in the CEBA that these limitations were
Statements to the Congress
necessary to prevent the owners of nonbank banks
from competing unfairly with bank holding companies and independent banks. In addition, the Congress found that the restrictions were needed to
address potential adverse effects, including conflicts
of interest, that could result from the ownership of
these insured banks by companies that, unlike bank
holding companies, are not subject to federal supervision or regulation or to the federal proscription
against mixing banking and commerce.
Fewer than twenty-five nonbank banks currently
claim the grandfather rights accorded in the CEBA.
The Board is concerned that removal of the limitations and restrictions that apply to nonbank banks
would enhance advantages that this relative handful
of organizations already possess over other owners
of banks and would give rise to the potential adverse
effects about which the Congress has in the past
expressed concern. In addition, removal of these limitations would permit the increased combination of
banking and commerce for a select group of commercial companies, creating potential disadvantages and
inequities for all other companies, including banks
and bank holding companies.
As this committee is aware, there is significant
debate in the context of broader efforts to modernize
our financial laws regarding whether it is prudent to
remove the existing separations between banking and
commerce. Because reform of the nonbank bank provisions raises fundamental questions regarding the
mixing of banking and commerce, the Board believes
that reform of the provisions governing nonbank
banks should be considered within the framework of
broad financial modernization rather than in the context of efforts to reduce regulatory burden.
335
tionally broadened and advocates retaining the current proscription against allowing multiple SLHCs
to acquire a significant interest in a commercial
company.
Daylight Overdrafts
Section 118 would require the Federal Reserve to
make intraday credit, in the form of daylight overdrafts, available to the Federal Home Loan Banks.
As it did in the last Congress, the Board strongly
opposes this proposal, which would provide special
treatment to the Federal Home Loan Banks over
other government-sponsored enterprises (GSEs) and
other lending institutions as well as over all depository institutions with access to central bank credit.
Section 118 would represent the first time that the
Congress has mandated the availability and price of
central bank credit. As such, this bill would serve as
precedent for other GSEs to meet intraday liquidity
needs with Federal Reserve credit at an administered
interest rate instead of with the proceeds of obligations issued in the markets at competitive rates as
contemplated by their statutory funding schemes.
In addition, section 118 would serve as a precedent
for regularly extending Federal Reserve credit to
institutions that are not subject to reserve requirements and therefore would grant the Federal Home
Loan Banks access to that credit on terms more
attractive than those available to depository institutions. For these reasons, the Board opposes extending
the availability of routine daylight overdrafts to the
Federal Home Loan Banks.
Price Discounts
Thrift Powers
S. 1405, as drafted, also would appear to expand the
mixing of commerce and banking by owners of savings associations. In particular, section 107, which
appears to have been intended to allow a savings and
loan holding company (SLHC) to acquire a noncontrolling interest in a savings association, would also
permit multiple SLHCs, with the approval of the
Office of Thrift Supervision, to acquire more than
5 percent of the shares of any company, including
any commercial firm. This would seem to expand the
ability of multiple SLHCs to mix banking and commerce to an unlimited degree, a result that the sponsors of this bill may not have intended. The Board
supports clarifying the language in the bill to ensure
that the powers of multiple SLHCs are not uninten
Section 204 is intended to allow banks to discount the
price of products and services that are offered in
bundles to consumers. Current law prohibits banks
from offering price discounts in most situations, even
though this is a common practice in other industries
and even though consumers benefit from receiving a
price discount on the purchase of a combination of
products and services.
In the past several years, the Board has utilized
authority granted to it by the Congress to craft a
number of exceptions to current law that allow banks
to offer price discounts on bundled products. For
example, the Board has allowed banks to offer discounts to customers that maintain a certain level
of deposits at the bank so long as both the deposit
accounts and the other bundled products are also
separately available to the public. This type of price
336
Federal Reserve Bulletin • May 1998
discounting both saves money for consumers who
desire the bundled products and allows consumers
who are not interested in purchasing the entire bundle
of discounted services to purchase individual products or services separately at competitive prices.
Section 204, as currently drafted, would appear to
go further than is necessary to allow this type of price
discounting. The Board would support efforts to
allow banks to offer price discounts to customers that
choose to acquire multiple products or services from
banks and their affiliates where the bundled products
and services are also made available separately to
customers at competitive prices.
Affiliations with Government-Sponsored
Enterprises
A provision in section 113 would remove the current
restriction on bank affiliations with GSEs. As worded,
the section would appear to permit a bank or bank
holding company to acquire control of any GSE and
to permit any GSE to acquire an insured bank. This
broad change, involving all GSEs, raises significant
policy issues that the Board believes go beyond the
scope of regulatory burden relief. For example, this
change raises the questions: Is it desirable to allow a
banking organization to exercise control over a GSE?
Would a banking organization that affiliates with a
GSE gain competitive advantages over its peers from
the special tax and quasi-governmental status of the
GSE? Would the secondary markets that rely on
GSEs be affected if a single banking organization
acquires control of a GSE? Conversely, is it appropriate to allow any GSE to acquire control of an insured
bank?
These and other questions are raised by a statutory
change that would affect all GSEs, but the Board
understands that the provision in section 113 is
intended to address an existing relationship involving
a banking organization's ownership of shares of a
single GSE. This situation may be better addressed
with a narrower provision that does not raise concerns regarding control of GSEs more broadly.
CLOSING THOUGHTS
The Board applauds the efforts of the committee to
continue to eliminate unnecessary governmentimposed burdens. The committee's past successes in
regulatory reform and relieving regulatory burdens
on banking organizations, coupled with the efforts of
the bank regulatory agencies, necessarily make the
committee's task today a difficult one. The committee's substantial previous efforts have left fewer areas
in banking law that require reexamination outside the
context of comprehensive financial modernization.
As a consequence, in some areas, S. 1405 attempts
to resolve issues that are better addressed in broader
legislation that would reform the financial services
industry.
The Board has long endorsed financial modernization strategies that ensure regulatory equity for all
participants in the financial services industry, that
minimize the chances that federal safety net subsidies
will be expanded into new activities and beyond the
confines of insured depository institutions, and that
guarantee adequate federal supervision of financial
organizations. The Board would be pleased to work
with the committee and its able staff to reach these
goals.
•
337
Announcements
SHIFT FROM CONTEMPORANEOUS RESERVE
REQUIREMENTS TO A LAGGED BASIS
The Federal Reserve Board on March 26, 1998, voted
to move from a system of contemporaneous reserve
requirements to one in which reserves are maintained
on a lagged basis. The change will go into effect with
the reserve maintenance period beginning July 30,
1998.
The switch will make it easier for depositories to
calculate their required reserve balances for the current maintenance period and will increase the accuracy of information on aggregate required reserve
balances, which is needed by the Open Market Trading Desk to carry out its operations.
Under the lagged system, the reserve maintenance
period for weekly reporting institutions will begin
thirty days after the beginning of the two-week
reserve computation period. Under the current system, the reserve maintenance period begins only two
days after the beginning of the computation period.
REGULATION E: INTERIM RULE
The Federal Reserve Board on March 13, 1998, published an interim rule to its Regulation E (Electronic
Fund Transfers) that permits depository institutions
to deliver disclosures electronically if the consumer
agrees.
The interim rule is similar to a proposed rule that
the Board published in May 1996, except that institutions need not provide paper copies of disclosures
delivered electronically. Electronic disclosures
remain subject to applicable timing, format, and other
requirements of the regulation.
The Board is also publishing a proposed amendment to Regulation E that would reduce the time
period for investigating errors that involve debit cards
used in point-of-sale and foreign transactions. Comments are requested by May 15.
Regulation Z (Truth in Lending). The official staff
commentary applies and interprets the requirements
of the regulation. The revisions are effective
March 31. Compliance is optional until October 1,
1998.
The revisions provide guidance for open-end credit
plans that increase rates triggered by late payments or
by exceeding credit limits and that have deferred
payment features. Proposed changes on how creditors
may determine whether credit is an open-end plan or
a closed-end transaction have been substantially
modified in the final revisions.
Also, the update discusses issues such as the treatment of annuity costs in reverse mortgage transactions and transaction fees imposed on checking
accounts with overdraft protection.
ISSUANCE OF FINAL RULE ON EXPANSION OF
THE EXAMINATION FREQUENCY CYCLE FOR
CERTAIN FINANCIAL INSTITUTIONS
The Federal Reserve Board along with the Office of
the Comptroller of the Currency, the Federal Deposit
Insurance Corporation, and the Office of Thrift
Supervision on March 30, 1998, issued a final rule to
expand the examination frequency cycle for certain
financial institutions. The rule is effective April 2,
1998.
Implementation of this final rule expands the eligibility for the eighteen-month examination cycle for
well-managed banks that are rated 1 or 2 from the
current asset size limit of $100 million to a new limit
of $250 million.
The ruling implements section 306 of the Riegle
Community Development and Regulatory Improvement Act of 1994 and section 2221 of the Economic
Growth and Regulatory Paperwork Reduction Act of
1996.
REGULATION Z: REVISIONS TO THE OFFICIAL
STAFF COMMENTARY
CLARIFICATION OF OPERATING STANDARDS
RELATING TO CUSTOMER DISCLOSURES OF
SECTION 20 SUBSIDIARIES
The Federal Reserve Board on March 31, 1998, published revisions to its official staff commentary to
The Federal Reserve Board on March 24, 1998,
announced a clarification of the operating standards
338
Federal Reserve Bulletin • May 1998
relating to customer disclosures of section 20 subsidiaries of bank holding companies. The clarification
was effective March 27, 1998.
The Board is modifying the customer disclosure
operating standard to make clear that a section 20
subsidiary operating off bank premises may satisfy
the standard by providing a one-time disclosure in
writing when an investment account is opened.
The clarification requires a section 20 subsidiary to
provide in writing to each of its retail customers at
the time an investment account is opened the same
minimum disclosures and to obtain the same customer acknowledgment as described in the Interagency Statement on Retail Sales of Nondeposit
Investment Products.
This clarification will relieve section 20 subsidiaries operating off the premises of depository institutions from providing oral disclosures to retail customers on a continuing basis.
REVISIONS TO THE CASH ACCESS POLICY ON
SHIPMENTS AND DEPOSITS IN AN INTERSTATE
BRANCHING ENVIRONMENT
The Federal Reserve Board on March 6, 1998,
announced revisions in its cash access policy on how
cash shipments and deposits will be handled in an
interstate branching environment. The revised policy
provides flexibility to depository institutions to obtain
cash services from any Reserve Bank office. The
policy is effective May 4, 1998.
The original policy adopted in 1996 mandates
greater consistency in Reserve Bank cash service
levels than currently exists by providing a base level
of free currency access to all depository institutions
but with restrictions on the frequency and number of
offices served.
Offices of depository institutions that meet minimum volume thresholds will be able to obtain more
frequent access. Fees will be charged for additional
access beyond the base service level.
PROPOSED ACTIONS
The Federal Reserve Board on March 13, 1998,
requested comment on a comprehensive review
of two of its consumer protection regulations—
Regulation B (Equal Credit Opportunity), and Regulation C (Home Mortgage Disclosure). Comments are
requested by May 29.
The Federal Reserve Board on March 13, 1998,
requested public comment on a proposal to permit the
electronic delivery of disclosures for four of its
consumer protection regulations. Comments are
requested by May 15.
The regulations affected are Regulation B (Equal
Credit Opportunity), Regulation M (Consumer Leasing), Regulation Z (Truth in Lending), and Regulation DD (Truth in Savings). These proposals to permit electronic disclosures correspond in approach to
an interim rule that the Board also published on
March 13, amending Regulation E (Electronic Fund
Transfers). The Board also requested comment on
proposed technical amendments to Regulations M
and DD.
The Federal Reserve Board on March 10, 1998,
requested comment on the benefits and drawbacks
associated with its 1994 same-day settlement rule.
The Board is also requesting comment on the implications of potential further rule changes to reduce
legal disparities between the Federal Reserve Banks
and private-sector banks in the presentment and
settlement of checks. Comments are requested by
July 17, 1998.
The Federal Reserve Board on March 31, 1998,
announced an extension of time to receive public
comments on its advance notice of proposed rulemaking concerning its margin regulations, Regulations T
(Credit by Brokers and Dealers), U (Credit by Banks
for Purchasing or Carrying Margin Stocks), and X
(Borrowers of Securities Credit). The comment
period is being extended from April 1, 1998, to
May 1, 1998.
AVAILABILITY OF TRANSCRIPTS OF THE 1992
MEETINGS OF THE FEDERAL OPEN MARKET
COMMITTEE
The Federal Reserve on March 11, 1998, made available for public inspection transcripts of meetings of
the Federal Open Market Committee (FOMC) that
were held during 1992. The package includes transcripts of eight regularly scheduled meetings and four
telephone conference calls.
Procedures adopted by the FOMC provide for the
public release of transcripts for an entire year with a
five-year lag. Minutes of each meeting are issued
with an approximate six-week lag, while decisions
made at each meeting are announced on the day of
the meeting.
The 1992 transcripts have been lightly edited to
enhance readability and to redact confidential material such as information pertaining to individual foreign central banks and private businesses.
Announcements
Copies of the transcripts are available from the
Board's Freedom of Information Office, Room MP500, Mail Stop 132, Board of Governors of the
Federal Reserve System, Washington, DC 20551
(telephone at 202-452-3684).
PUBLICATION OF THE DECEMBER 1997 UPDATE
OF THE BANK HOLDING COMPANY
SUPERVISION MANUAL
The December 1997 update of the Bank Holding
Company Supervision Manual, Supplement No. 13,
is now available. The manual comprises the Federal
Reserve System's bank holding company inspection
procedures and supervisory guidance. The supervisory information includes the following.
Control and Ownership
• Revisions to the general control and ownership
section for the repeal of section 2(g)(3) of the Bank
Holding Company Act that originated from the Economic Growth and Regulatory Paperwork Reduction
Act of 1996. This act also provided a limited new
exemption, "qualified family partnerships," from the
definition of "company."
Nonbanking Activities
• Changes to the "laundry list" of nonbanking
activities for the revised Regulation Y (Bank Holding
Companies and Change in Bank Control), effective
April 21, 1997. The Regulation Y changes are also
reflected in the sections on nonbank depository institutions and savings associations, leasing of personal
or real property, community development advisory
and related services, EDP servicing, payment instrument services, and the arranging of real estate equity
financing.
Management Information Systems
• Limited revisions to the inspection guidelines
and procedures for management information systems.
The revision supplement includes a more detailed
list of changes to the manual. The manual and
updates, including pricing information, are available
339
from Publications Services, Mail Stop 127, Board of
Governors of the Federal Reserve System, Washington, DC 20551 (or by FAX at 202-728-5886).
ISSUANCE OF THE 1998 TRADING AND
CAPITAL-MARKETS ACTIVITIES MANUAL
The Federal Reserve Board on March 9, 1998, issued
its 1998 Trading and Capital-Markets Activities
Manual for examiners and banking organizations.
The new manual represents a substantive revision
and expansion of the Trading Activities Manual
issued in March 1994.
The new manual compiles the latest Federal
Reserve supervisory guidance on trading operations
and related capital-markets banking activities. It
details both sound management practices and key
examination and review considerations for these
operations and activities.
The manual provides in-depth discussions of a
wide range of risk management issues encountered in
trading and dealer operations, including revised and
expanded presentations on market risk, counterparty
credit risk, legal risk, financial reporting, accounting,
and ethics.
Chapters on capital adequacy and settlement risk
and a comprehensive subject index have also been
added. A new section of the manual presents existing
guidance on other capital-markets-related activities,
including whole-bank interest rate risk management,
investment and end-user activities, and secondary
market credit activities and products such as securitization and credit derivatives.
The manual also includes profiles of thirty-five
specific financial instruments commonly encountered
in trading and capital-markets-related activities. Each
profile contains a basic description of the instrument
and discussions on topics such as the risks encountered, pricing conventions, accounting treatment,
risk-based capital considerations, and bank-eligibility
requirements.
Copies of the manual may be obtained for $50
from Publications Services, Mail Stop 127, Board of
Governors of the Federal Reserve System, Washington, DC 20551.
Updates and supplements will be issued as needed
in the spring and fall of each year. The price will be
$20 annually. The manual was produced by staff
members at the Board of Governors and at the Federal Reserve Banks of New York, Chicago, Minneapolis, and San Francisco.
340
Federal Reserve Bulletin • May 1998
CHANGES IN BOARD STAFF
The Board of Governors announced that Florence M.
Young, Assistant Director in the Division of Reserve
Bank Operations and Payment Systems, would retire
on April 3. Ms. Young had served the Board since
1972.
Also, in the Division of Reserve Bank Operations
and Payment Systems, the Board announced on
April 6, 1998, the appointment of Marsha Reidhill
as Assistant Director. Ms. Reidhill has been at the
Board since November 1992. She received her B.S.
in finance from Georgetown University and an M.A.
in economics from the University of Texas.
•
341
Legal Developments
JOINT FINAL RULE—EXPANDED EXAMINATION
FOR CERTAIN SMALL INSURED INSTITUTIONS
CYCLE
The Board of Governors of the Federal Reserve System
("Board"), the Office of the Comptroller of the Currency
("OCC"), the Federal Deposit Insurance Corporation
("FDIC"), and the Office of Thrift Supervision ("OTS")
(collectively, the "Agencies"), are adopting as a final rule
their joint interim rule implementing section 306 of the
Riegle Community Development and Regulatory Improvement Act of 1994 ("CDRI") and section 2221 of the
Economic Growth and Regulatory Paperwork Reduction
Act of 1996 ("EGRPRA"). Together, section 306 of CDRI
and section 2221 of EGRPRA authorize the Agencies to
increase the asset size of certain financial institutions that
may be examined once in every 18-month period, rather
than once in every 12-month period, from $100 million to a
revised limit of $250 million. This final rule makes certain
institutions that have $250 million or less in assets eligible
for the 18-month examination schedule.
Effective April 2, 1998, 12 C.F.R. Parts 4, 208, 337, and
563 are amended as follows:
Part 4—Organization and Functions, Availability
and Release of Information, Contracting Outreach
Program
1. The authority citation for Part 4 continues to read as
follows:
Authority: 12 U.S.C. 93a. Subpart A also issued under
5 U.S.C. 552; 12 U.S.C. 481, 1820(d). Subpart B also
issued under 5 U.S.C. 552; E.O. 12600 (3 C.F.R., 1987
Comp., p. 235). Subpart C also issued under 5 U.S.C. 301,
552; 12 U.S.C. 481, 482, 1821(o), 1821(t); 18 U.S.C. 641,
1905, 1906; 31 U.S.C. 9701. Subpart D also issued under
12 U.S.C. 1833e.
each 12-month period as provided in paragraph (a) of this
section, if the following conditions are satisfied:
(1) The bank has total assets of $250 million or less;
(2) The bank is well capitalized as defined in Part 6 of
this chapter;
(3) At the most recent examination, the OCC found the
bank to be well managed;
(4) At the most recent examination, the OCC assigned
the bank a composite rating of 1 or 2 under the Uniform
Financial Institutions Rating System (copies are available at the addresses specified in section 4.14);
(5) The bank currently is not subject to a formal enforcement proceeding or order by the FDIC, OCC, or Federal
Reserve System; and
(6) No person acquired control of the bank during the
preceding 12-month period in which a full-scope, on-site
examination would have been required but for this section.
(c) Authority to conduct more frequent examinations. This
section does not limit the authority of the OCC to examine
any national bank as frequently as the agency deems necessary.
Part 208—Membership of State Banking
Institutions in the Federal Reserve System
(Regulation H)
1. The authority citation for Part 208 continues to read as
follows:
Authority: 12 U.S.C. 24, 36, 92(a), 93(a), 248(a), 248(c),
321-338a, 37Id, 461, 481-486, 601, 611, 1814, 1816,
1818, 1820(d)(9), 1823(j), 1828(o), 1831, 1831o, 1831p-l,
1831r-l, 1835(a), 1882, 2901-2907, 3105, 3310,33313351, and 3906-3909; 15 U.S.C. 78b, 781(b), 78I(g), 781(i),
78o-4(c)(5), 78q, 78q-l and 78w; 31 U.S.C. 5318;
42 U.S.C. 4012a, 4104a, 4104b, 4106 and 4128.
2. In Subpart A, section 4.6 is revised to read as follows:
Section 4.6—Frequency of examination.
(a) General. The OCC examines national banks pursuant to
authority conferred by 12 U.S.C. 481 and the requirements
of 12 U.S.C. 1820(d). The OCC is required to conduct a
full-scope, on-site examination of every national bank at
least once during each 12-month period.
(b) 18-month rule for certain small institutions. The OCC
may conduct a full-scope, on-site examination of a national
bank at least once during each 18-month period, rather than
2. In Subpart A, section 208.26 is revised to read as
follows:
Section 208.26—Frequency of examination.
(a) General. The Federal Reserve examines insured member banks pursuant to authority conferred by 12 U.S.C. 325
and the requirements of 12 U.S.C. 1820(d). The Federal
Reserve is required to conduct a full-scope, on-site examination of every insured member bank at least once during
each 12-month period.
342
Federal Reserve Bulletin • May 1998
(b) 18-month rule for certain small institutions. The Federal Reserve may conduct a full-scope, on-site examination
of an insured member bank at least once during each
18-month period, rather than each 12-month period as
provided in paragraph (a) of this section, if the following
conditions are satisfied:
(1) The bank has total assets of $250 million or less;
(2) The bank is well capitalized as denned in subpart B
of this part (section 208.33);
(3) At the most recent examination conducted by either
the Federal Reserve or applicable State banking agency,
the Federal Reserve found the bank to be well managed;
(4) At the most recent examination conducted by either
the Federal Reserve or applicable State banking agency,
the Federal Reserve assigned the bank a composite rating of 1 or 2 under the Uniform Financial Institutions
Rating System (copies are available at the address specified in section 216.6 of this chapter);
(5) The bank currently is not subject to a formal enforcement proceeding or order by the FDIC, OCC, or Federal
Reserve System; and
(6) No person acquired control of the bank during the
preceding 12-month period in which a full-scope, on-site
examination would have been required but for this section.
(c) Authority to conduct more frequent examinations. This
section does not limit the authority of the Federal Reserve
to examine any insured member bank as frequently as the
agency deems necessary.
Part 337—Unsafe and Unsound Banking
Practices
1. The authority citation for Part 337 continues to read as
follows:
Authority: 12 U.S.C. 375a(4), 375b, 1816, 1818(a),
1818(b), 1819, 1820(d)(10), 1821(f), 1828(j)(2), 183 If,
1831f-l.
2. Section 337.12 is revised to read as follows:
Section 337.12—Frequency of examination.
(a) General. The Federal Deposit Insurance Corporation
examines insured state nonmember banks pursuant to authority conferred by section 10 of the Federal Deposit
Insurance Act (12 U.S.C. 1820). The FDIC is required to
conduct a full-scope, on-site examination of every insured
state nonmember bank at least once during each 12-month
period.
(b) 18-month rule for certain small institutions. The FDIC
may conduct a full-scope, on-site examination of an insured state nonmember bank at least once during each
18-month period, rather than each 12-month period as
provided in paragraph (a) of this section, if the following
conditions are satisfied:
(1) The bank has total assets of $250 million or less;
(2) The bank is well capitalized as defined in section
325.103(b)(l);
(3) At the most recent FDIC or applicable State banking
agency examination, the FDIC found the bank to be well
managed;
(4) At the most recent FDIC or applicable State banking
agency examination, the FDIC assigned the insured state
nonmember bank a composite rating of 1 or 2 under the
Uniform Financial Institutions Rating System (copies
are available at the addresses specified in section 309.4
of this chapter);
(5) The bank currently is not subject to a formal enforcement proceeding or order by the FDIC, OCC, or Federal
Reserve System; and
(6) No person acquired control of the bank during the
preceding 12-month period in which a full-scope, on-site
examination would have been required but for this section.
(c) Authority to conduct more frequent examinations. This
section does not limit the authority of the FDIC to examine
any insured state nonmember bank as frequently as the
agency deems necessary.
Part
563—Operations
1. The authority citation for Part 563 continues read as
follows:
Authority: 12 U.S.C. 375b, 1462, 1462a, 1463, 1464,
1467a, 1468, 1817, 1820, 1828, 3806; 42 U.S.C. 4106.
2. Section 563.171 is revised to read as follows:
Section 563.171—Frequency of examination.
(a) General. The OTS examines savings associations pursuant to authority conferred by 12 U.S.C. 1463 and the
requirements of 12 U.S.C. 1820(d). The OTS is required to
conduct a full-scope, on-site examination of every savings
association at least once during each 12-month period.
(b) 18-month rule for certain small institutions. The OTS
may conduct a full-scope, on-site examination of a savings
association at least once during each 18-month period,
rather than each 12-month period as provided in paragraph
(a) of this section, if the following conditions are satisfied:
(1) The savings association has total assets of
$250 million or less;
(2) The savings association is well capitalized as defined
in section 565.4 of this Chapter;
(3) At its most recent examination, the OTS found the
savings association to be well managed;
(4) At its most recent examination, the OTS assigned the
savings association a composite rating of 1 or 2, as
defined in section 516.3(c) of this chapter;
(5) The savings association currently is not subject to a
formal enforcement proceeding or order; and
(6) No person acquired control of the savings association during the preceding 12-month period in which a
Legal Developments 343
full-scope, on-site examination would have been required but for this section.
(c) Authority to conduct more frequent examinations. This
section does not limit the authority of the OTS to examine
any savings association as frequently as the agency deems
necessary.
FINAL RULE—AMENDMENT TO REGULATION B
The Board of Governors is amending 12 C.F.R. Part 202,
its Regulation B (Equal Credit Opportunity). The Board is
amending certain model forms in its Regulation B to reflect
statutory amendments to the Fair Credit Reporting Act
("FCRA") disclosures contained in those forms. Creditors
have the option of including the FCRA disclosures with the
notice of action taken required under Regulation B. In
addition, a technical revision has been made to Appendix A.
Effective April 30, 1998, 12 C.F.R. Part 202 is amended
as follows:
Part 202—Equal Credit Opportunity (Regulation B)
1. The authority citation for Part 202 continues to read as
follows:
Authority: 15 U.S.C. 1691-1691f.
2. Appendix A is amended by revising the second paragraph to read as follows:
APPENDIX A TO PART 202—FEDERAL ENFORCEMENT
AGENCIES
National Banks, and Federal Branches and Federal Agencies of Foreign Banks
Office of the Comptroller of the Currency, Customer Assistance Unit, 1301 McKinney Avenue, Suite 3710, Houston,
Texas 77010.
3. Appendix C is amended as follows:
a. By revising the second paragraph;
b. By revising Form C-l;
c. By revising Form C-2;
d. By revising Form C-3;
e. By revising Form C-4;
f. By revising Form C-5.
The revisions read as follows:
(Sample forms C-l through C-5 begin on page 344.)
344
Federal Reserve Bulletin • May 1998
FORM C-l
-- SAMPLE NOTICE OF ACTION TAKEN AND STATEMENT OF REASONS
Statement of Credit Denial, Termination, or Change
Date:
Applicant's Name:
Applicant's Address:
Description of Account, Transaction, or Requested Credit:
Description of Action Taken:
PART I -
PRINCIPLE REASON(S) FOR CREDIT DENIAL, TERMINATION,
OR OTHER ACTION TAKEN CONCERNING CREDIT.
This section must be completed in all instances.
-Credit application incomplete
-Length of residence
-Insufficient number of credit
references provided
-Temporary residence
.Unable to verify residence
-Unacceptable type of credit
references provided
No credit file
-Unable to verify credit references
Limited credit experience
-Temporary or irregular employment
Poor credit performance with us
-Unable to verify employment
Delinquent past or present credit
obligations with others
-Length of employment
come insufficient for amount
of credit requested
Excessive obligations in
relation to income
Unable to verify income
-Other, specify:
Garnishment, attachment, foreclosure,
repossession, collection action, or
judgment
Bankruptcy
-Value or type of collateral
not sufficient
Legal Developments
FORM
345
C-l, page 2
PART II
DISCLOSURE OF USE OF INFORMATION OBTAINED FROM AN OUTSIDE SOURCE.
This section should be completed if the credit decision was based
in whole or in part on information that has been obtained from an
outside source.
Our credit decision was based in whole or in part on information obtained in a report from
the consumer reporting agency listed below. You have a right under the Fair Credit
Reporting Act to know the information contained in your credit file at the consumer
reporting agency. The reporting agency played no part in our decision and is unable to
supply specific reasons why we have denied credit to you. You also have a right to a free
copy of your report from the reporting agency, if you request it no later than 60 days after
you receive this notice. In addition, if you find that any information contained in the
report you receive is inaccurate or incomplete, you have the right to dispute the matter
with the reporting agency.
Name:
Address:
[Toll-free] Telephone number:
Our credit decision was based in whole or in part on information obtained from an affiliate
or from an outside source other than a consumer reporting agency. Under the Fair Credit
Reporting Act, you have the right to make a written request, no later than 60 days after
you receive this notice, for disclosure of the nature of this information.
If you have any questions regarding this notice, you should contact:
Creditor's name:
Creditor's address:
Creditor's telephone number:
NOTICE
The federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit
applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided
the applicant has the capacity to enter into a binding contract); because all or part of the
applicant's income derives from any public assistance program; or because the applicant has in
good faith exercised any right under the Consumer Credit Protection Act. The federal agency that
administers compliance with this law concerning this creditor is (name and address as specified
by the appropriate agency listed in appendix A).
346
Federal Reserve Bulletin • May 1998
FORM C-2-SAMPLE NOTICE OF ACTION TAKEN AND STATEMENT OF REASONS
Date
Dear Applicant:
Thank you for your recent application. Your request for [a loan/a credit card/an increase in
your credit limit] was carefully considered, and we regret that we are unable to approve your
application at this time, for the following reason(s):
Your Income:
is below our minimum requirement.
is insufficient to sustain payments on the amount of credit
requested.
could not be verified.
Your Employment:
is not of sufficient length to qualify.
could not be verified.
Your Credit History:
of making payments on time was not satisfactory.
could not be verified.
Your Application:
lacks a sufficient number of credit references.
lacks acceptable types of credit references.
reveals that current obligations are excessive in relation to
income.
Other:
The consumer reporting agency contacted that provided information that influenced our
decision in whole or in part was [name, address and [toll-free] telephone number of the
reporting agency]. The reporting agency is unable to supply specific reasons why we have
denied credit to you. You do, however, have a right under the Fair Credit Reporting Act to
know the information contained in your credit file. You also have a right to a free copy of
your report from the reporting agency, if you request it no later than 60 days after you receive
this notice. In addition, if you find that any information contained in the report you receive is
inaccurate or incomplete, you have the right to dispute the matter with the reporting agency.
Any questions regarding such information should be directed to [consumer reporting agency].
If you have any questions regarding this letter, you should contact us at [creditor's name,
address and telephone number].
NOTICE: The federal Equal Credit Opportunity Act prohibits creditors from discriminating
against credit applicants on the basis of race, color, religion, national origin, sex, marital
status, age (Provided the applicant has the capacity to enter into a binding contract); because
all or part of the applicant's income derives from any public assistance program; or because
the applicant has in good faith exercised any right under the Consumer Credit Protection Act.
The federal agency that administers compliance with this law concerning this creditor is (name
and address as specified by the appropriate agency listed in Appendix A).
Legal Developments
347
FORM C-3 — SAMPLE NOTICE OF ACTION TAKEN AND STATEMENT OF REASONS
(CREDIT SCORING)
Date
Dear Applicant:
Thank you for your recent application for
We regret that we are unable to approve your request.
Your application was processed by a credit scoring system that assigns a
numerical value to the various items of information we consider in evaluating an application.
These numerical values are based upon the results of analyses of repayment histories of large
numbers of customers.
The information you provided in your application did not score a sufficient
number of points for approval of the application. The reasons why you did not score well
compared with other applicants were:
•
•
•
Insufficient bank references
Type of occupation
Insufficient credit experience
In evaluating your application the consumer reporting agency listed below
provided us with information that in whole or in part influenced our decision. The reporting
agency played no part in our decision other than providing us with credit information about
you. Under the Fair Credit Reporting Act, you have a right to know the information provided
to us. It can be obtained by contacting: [name, address, and [toll-free] telephone number of
the consumer reporting agency]. You also have a right to a free copy of your report from the
reporting agency, if you request it no later than 60 days after you receive this notice. In
addition, if you find that any information contained in the report you receive is inaccurate or
incomplete, you have the right to dispute the matter with the reporting agency.
If you have any questions regarding this letter, you should contact us at
Creditor's Name:
Address:
Telephone:
Sincerely,
NOTICE: The federal Equal Credit Opportunity Act prohibits creditors from discriminating
against credit applicants on the basis of race, color, religion, national origin, sex, marital
status, age (with certain limited exceptions); because all or part of the applicant's income
derives from any public assistance program; or because the applicant has in good faith
exercised any right under the Consumer Credit Protection Act. The federal agency that
administers compliance with this law concerning this creditor is (name and address as specified
by the appropriate agency listed in Appendix A).
348
Federal Reserve Bulletin • May 1998
FORM C-4 -- SAMPLE NOTICE OF ACTION TAKEN AND STATEMENT OF REASONS AND COUNTEROFFER
Date
Dear Applicant:
Thank you for your application for
We are unable
to offer you credit on the terms that you requested for the following reason(s):
We can, however, offer you credit on the following terms:
If this offer is acceptable to you, please notify us within [amount of time] at the
following address:
Our credit decision on your application was based in whole or in part on
information obtained in a report from [name, address and [toll-free] telephone number
of the consumer reporting agency]. You have a right under the Fair Credit Reporting Act
to know the information contained in your credit file at the consumer reporting agency.
The reporting agency played no part in our decision and is unable to supply specific reasons
why we have denied credit to you. You also have a right to a free copy of your report from
the reporting agency, if you request it no later than 60 days after you receive this notice. In
addition, if you find that any information contained in the report you receive is inaccurate or
incomplete, you have the right to dispute the matter with the reporting agency.
You should know that the federal Equal Credit Opportunity Act prohibits creditors,
such as ourselves, from discriminating against credit applicants on the basis of their race,
color, religion, national origin, sex, marital status, age because they receive income from a
public assistance program, or because they may have exercised their rights under the
Consumer Credit Protection Act. If you believe there has been discrimination in handling
your application you should contact the [name and address of the appropriate federal
enforcement agency listed in Appendix A.]
Sincerely,
Legal Developments
349
FORM C-5 - SAMPLE DISCLOSURE OF RIGHT TO REQUEST SPECIFIC REASONS FOR CREDIT
DENIAL
Date
Dear Applicant:
Thank you for applying to us for
After carefully reviewing your application, we are sorry to advise you that we cannot [open an
account for you/grant a loan to you/increase your credit limit] at this time.
If you would like a statement of specific reasons why your application was denied, please
contact [our credit service manager] shown below within 60 days of the date of this letter. We
will provide you with the statement of reasons within 30 days after receiving your request.
Creditor's Name
Address
Telephone number
If we obtained information from a consumer reporting agency as part of our consideration of
your application, its name, address, and [toll-free] telephone number is shown below. The reporting agency played no part in our decision and is unable to supply specific reasons why we
have denied credit to you. [You have a right under the Fair Credit Reporting Act to know the
information contained in your credit file at the consumer reporting agency.] You have a right
to a free copy of your report from the reporting agency, if you request it no later than 60 days
after you receive this notice. In addition, if you find that any information contained in the
report you receive is inaccurate or incomplete, you have the right to dispute the matter with
the reporting agency. You can find out about the information contained in your file (if one
was used) by contacting:
Consumer reporting agency's name
Address
[Toll-free] Telephone number
Sincerely,
NOTICE
The federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit
applicants on the basis of race, color, religion, national origin, sex, marital status, age
(provided the applicant has the capacity to enter into a binding contract); because all or part of
the applicant's income derives from any public assistance program; or because the applicant
has in good faith exercised any right under the Consumer Credit Protection Act. The federal
agency that administers compliance with this law concerning this creditor is (name and address
as specified by the appropriate agency listed in Appendix A).
350
Federal Reserve Bulletin • May 1998
APPENDIX C TO PART 202—SAMPLE NOTIFICATION
FORMS
Form C-1 contains the Fair Credit Reporting Act disclosure
as required by sections 615(a) and (b) of that act. Forms
C-2 through C-5 contain only the section 615(a) disclosure
(that a creditor obtained information from a consumer
reporting agency that played a part in the credit decision).
A creditor must provide the 615(a) disclosure when adverse action is taken against a consumer based on information from a consumer reporting agency. A creditor must
provide the section 615(b) disclosure when adverse action
is taken based on information from an outside source other
than a consumer reporting agency. In addition, a creditor
must provide the 615(b) disclosure if the creditor obtained
information from an affiliate other than information in a
consumer report or other than information concerning the
affiliate's own transactions or experiences with the consumer. Creditors may comply with the disclosure requirements for adverse action based on information in a consumer report obtained from an affiliate by providing either
the 615(a) or 615(b) disclosure.
FINAL RULE—AMENDMENT
TO REGULATION D
The Board of Governors is amending 12 C.F.R. Part 204,
its Regulation D (Reserve Requirements of Depository
Institutions), in order to move from the current system of
contemporaneous reserve maintenance for institutions that
are weekly deposits reporters to a system under which
reserves are maintained on a lagged basis by such institutions. Under a lagged reserve maintenance system, the
reserve maintenance period for a weekly deposits reporter
will begin thirty days after the beginning of a reserve
computation period. Under the current system, the reserve
maintenance period begins only two days after the beginning of a reserve computation period.
Effective July 30, 1998, 12 C.F.R. Part 204 is amended
as follows:
Part 204—Reserve Requirements of Depository
Institutions (Regulation D)
1. The authority citation for Part 204 continues to read as
follows:
Authority: 12 U.S.C. 248(a), 248(c), 371a, 461, 601, 611,
and 3105.
2. In section 204.3, paragraph (c) is revised to read as
follows:
Section 204.3—Computation and maintenance.
* * * * *
(c) Computation of required reserves for institutions that
report on a weekly basis.
(1) Required reserves are computed on the basis of daily
average balances of deposits and Eurocurrency liabilities
during a 14-day period ending every second Monday
(the computation period). Reserve requirements are
computed by applying the ratios prescribed in section 204.9 to the classes of deposits and Eurocurrency
liabilities of the institution. In determining the reserve
balance that is required to be maintained with the Federal Reserve, the average daily vault cash held during
the computation period is deducted from the amount of
the institution's required reserves.
(2) The reserve balance that is required to be maintained
with the Federal Reserve shall be maintained during a
14-day period (the "maintenance period") that begins
on the third Thursday following the end of a given
computation period.
FINAL RULE—AMENDMENT
TO REGULATION Y
The Board of Governors is amending 12 C.F.R. Part 225,
its Regulation Y (Bank Holding Companies and Change in
Bank Control; Clarification to the Board's Section 20 Orders). The Board is clarifying one of the operating standards established in its decisions under the Bank Holding
Company Act and section 20 of the Glass-Steagall Act
permitting a nonbank subsidiary of a bank holding company to underwrite and deal in securities. The Board is
modifying the customer disclosure operating standard to
make clear that a section 20 subsidiary operating off bank
premises may satisfy the standard by providing a one-time
disclosure in writing when an investment account is
opened.
Effective March 27, 1998, 12 C.F.R. Part 225 is amended
as follows:
Part 225—Bank Holding Companies and Change in
Bank Control (Regulation Y)
1. The authority citation for Part 225 continues to read as
follows:
Authority: 12 U.S.C. 1817(j)(13), 1818, 18311, 1831p-l,
1843(c)(8), 1844(b), 1972(1), 3106, 3108, 3310, 33313351,3907, 3908, and 3909.
2. Section 225.200 is amended by revising paragraph
(b)(4)(i) to read as follows:
Section 225.200—Conditions to Board's Section 20
Orders
* * * * *
(b) Conditions. * * *
(4) Customer disclosure.
(i) Disclosure to section 20 customers. A section 20
subsidiary shall provide, in writing, to each of its
Legal Developments
retail customers,1 at the time an investment account is
opened, the same minimum disclosures, and obtain
the same customer acknowledgment, described in the
Interagency Statement on Retail Sales of Nondeposit
Investment Products (Statement) as applicable in such
situations. These disclosures must be provided regardless of whether the section 20 subsidiary is itself
engaged in activities through arrangements with a
bank that are covered by the Statement.
ORDERS ISSUED UNDER BANK HOLDING COMPANY ACT
Orders Issued Under Section 3 of the Bank Holding
Company Act
Peoples Heritage Financial Group, Inc.
Portland, Maine
Order Approving Merger of Bank Holding Companies
Peoples Heritage Financial Group, Inc., Portland, Maine
("Peoples"), a bank holding company within the meaning
of the Bank Holding Company Act ("BHC Act"), has
requested the Board's approval under section 3 of the BHC
Act (12U.S.C. § 1842) to merge with CFX Corporation,
Keene, New Hampshire ("CFX"), and to acquire CFX's
subsidiary banks: CFX Bank, Keene, New Hampshire
("CFX Bank"); Orange Savings Bank, Orange, Massachusetts ("Orange Savings Bank"); and Safety Fund National
Bank, Fitchburg, Massachusetts ("Safety Bank"). 1
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published (63
Federal Register 2980 (1998)). The time for filing comments has expired, and the Board has considered the proposal and all comments received in light of the factors set
forth in section 3 of the BHC Act.
Peoples operates depository institutions2 in Maine, New
Hampshire, and Massachusetts, and CFX operates banks in
New Hampshire and Massachusetts. Peoples is the third
largest depository institution in New Hampshire, controlling $1.6 billion in deposits, representing approximately
12.3 percent of total deposits in depository institutions in
the state ("state deposits"), and the 20th largest depository
1. For purposes of this operating standard, a retail customer is any
customer that is not an "accredited investor" as defined in 17 C.F.R.
230.501(a).
1. Peoples would merge CFX Bank with and into its bank in New
Hampshire, Bank of New Hampshire, Manchester, New Hampshire
("Manchester Bank"), and Orange Savings Bank and Safety Bank
with and into its savings bank in Massachusetts, Family Bank, FSB,
Haverhill, Massachusetts ("Family Bank"). Peoples's subsidiaries
have requested approval for the proposed mergers from the Federal
Deposit Insurance Corporation ("FDIC") and the Office of Thrift
Supervision ("OTS") under section 18(c) of the Federal Deposit
Insurance Act (12 U.S.C. 1828(c)) (the "Bank Merger Act"), and the
appropriate state bank regulators.
2. In this context, depository institutions include commercial banks,
savings banks, and savings associations.
351
institution in Massachusetts, controlling $630.7 million in
deposits, representing less than 1 percent of state deposits.3
CFX is the fourth largest depository institution in New
Hampshire, controlling $1.6 billion in deposits, representing approximately 11.8 percent of state deposits, and the
47th largest depository institution in Massachusetts, controlling $348.4 million in deposits, representing less than
1 percent of state deposits. On consummation of the proposal, and accounting for the proposed divestitures, Peoples would become the largest depository institution in
New Hampshire and the 11th largest depository institution
in Massachusetts.
Interstate Analysis
Section 3(d) of the BHC Act, as amended by Section 101
of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 ("Riegle-Neal Act"), 4 allows the Board
to approve an application by a bank holding company to
acquire control of a bank located in a state other than the
home state of such bank holding company, if certain conditions are met. For purposes of the BHC Act, the home state
of Peoples is Maine, and CFX controls banks in New
Hampshire and Massachusetts.5 All of the conditions for an
interstate acquisition enumerated in section 3(d) are met in
this case.6 In view of all the facts of record, the Board is
permitted to approve the proposal under section 3(d) of the
BHC Act.
Competitive Considerations
The BHC Act prohibits the Board from approving a proposal if it would result in a monopoly or if the effect of the
proposal may be substantially to lessen competition in any
relevant market, unless the Board finds that the anticompetitive effects of the proposed transaction are clearly
3. All state deposit data are as of June 30, 1997.
4. Pub. L. No. 103-328, 108 Stat. 2338 (1994).
5. A bank holding company's home state is that state in which the
operation of the bank holding company's banking subsidiaries are
principally conducted on July 1, 1966, or the date on which the
company became a bank holding company, whichever is later.
12 U.S.C. § 1841(o)(4)(C).
6. See 12 U.S.C. §§ 1842(d)(l)(A) and (B) and 1842(d)(2)(A) and
(B). Peoples is adequately capitalized and adequately managed, as
defined by the Riegle-Neal Act, and CFX's banks have been in
existence and operated for the minimum periods of time necessary to
satisfy age requirements established by applicable state law. See N.H.
Rev. Stat. Ann. ch. 384 (1997) (5 years); Mass. Ann. Laws ch. 167A
§ 2 (Law. Co-op. 1997) (3 years). Massachusetts imposes a 28 percent
limitation on the amount of deposits in insured depository institutions
that a banking organization may control through acquisition and New
Hampshire imposes a 20 percent limitation, but permits state action to
waive this maximum, up to 30 percent. On consummation of the
proposal, accounting for all proposed divestitures, Peoples would
control less than 10 percent of the total amount of deposits of insured
depository institutions in the United States. Peoples also would not
exceed applicable state law deposit limitations as calculated under
state law, and state banking authorities in New Hampshire and Massachusetts have advised the Board that the proposal is consistent with
state law. All other requirements of section 3(d) of the BHC Act also
would be met on consummation of the proposal.
352
Federal Reserve Bulletin • May 1998
outweighed in the public interest by the probable effect of
the transaction in meeting the convenience and needs of
the community to be served.7
Peoples and CFX compete in the following banking
markets: the Hillsborough, Manchester, and Concord banking markets, all in New Hampshire; the Boston, Massachusetts, banking market; and the Portsmouth/Dover/Rochester
banking market.8 Consummation of the proposal would be
consistent with the Department of Justice Merger Guidelines ("DOJ Guidelines") 9 and prior Board precedent in
the Boston and Portsmouth/Dover/Rochester banking markets. 10
In order to mitigate the potential anticompetitive effects
of the proposal in the Hillsborough, Manchester, and Concord banking markets, Peoples has committed to divest
certain branches in those markets.11 In the Hillsborough
7. 12 U.S.C. § 1842(c)(l)(B). Market share data used to analyze the
competitive effects of the proposal are as of June 30, 1997. These data
are based on calculations in which the deposits of thrift institutions are
included at 50 percent. The Board has previously indicated that thrift
institutions have become, or have the potential to become, significant
competitors of commercial banks. See Midwest Financial Group, 75
Federal Reserve Bulletin 386 (1989); National City Corporation, 70
Federal Reserve Bulletin 743 (1984). Thus, the Board has regularly
included thrift deposits in the calculation of market share on a
50-percent weighted basis. See, e.g., First Hawaiian, Inc., 77 Federal
Reserve Bulletin 52 (1991).
8. The Hillsborough banking market is defined as the Hillsborough
County towns of Deering, Hillsborough, and Windsor, and the town of
Washington in Sullivan County, all in New Hampshire. The Manchester banking market is defined as the Manchester RMA and the towns
of Chester, Deerfield, New Boston, Raymond, Raymond and Weare,
all in New Hampshire. The Concord banking market consists of the
Concord RMA and the towns of Andover, Barnstead, Bradford, Canterbury, Dunbarton, Henniker, Hill, Salisbury, Warner, Webster and
Loudon, and the city of Franklin, all in New Hampshire. The Boston
banking market is defined as the Boston MSA. The Portsmouth/Dover/
Rochester banking market is defined as the Portsmouth/Dover/
Rochester RMA and the towns of Brookfield, Epping, Fremont,
Hampton Falls, Kensington, Middleton, New Durham, Northwood,
Nottingham, Strafford, and Wakefield in New Hampshire, and the
town of Lebanon, Maine.
9. Under the revised DOJ Guidelines, 49 Federal Register 26,823
(June 29, 1984), a market in which the post-merger HerfindahlHirschman Index ("HHI") exceeds 1800 is considered highly concentrated. The Department of Justice has informed the Board that a bank
merger or acquisition generally will not be challenged (in the absence
of other factors indicating anticompetitive effects) unless the postmerger HHI is at least 1800 and the merger increases the HHI by more
than 200 points. The Department of Justice has stated that the higher
than normal HHI thresholds for screening bank mergers for anticompetitive effects implicitly recognize the competitive effect of limitedpurpose lenders and other non-depository financial entities.
10. On consummation of the proposal. Peoples would remain the
eighth largest depository institution in the Boston banking market and
control $1.35 billion in deposits, representing approximately 1.6 percent of total deposits in depository institutions in the market ("market
deposits"). The HHI would increase by 1 point to 1447. Peoples
would become the largest depository institution in the Portsmouth/
Dover/Rochester banking market and control $835.6 million in deposits, representing 32.6 percent of market deposits. The HHI would
increase by 265 points to 1680.
11. With respect to each market in which Peoples would divest
branches, Peoples has committed to execute sales agreements with an
out-of-market competitor prior to consummation of the acquisition of
CFX, and to complete the divestitures within 180 days of consumma
banking market, Peoples would divest CFX's only branch
to an out-of-market competitor, and the concentration in
this market, as measured by the HHI, would remain unchanged. In the Manchester banking market, Peoples proposes to divest two CFX branches with total deposits of
$51.3 million to an out-of-market competitor. Accounting
for the proposed divestiture, consummation of the proposal
would be consistent with the DOJ Guidelines and Board
precedent in this market.12
In the Concord banking market, Peoples proposes to
divest two branches controlling $104 million in deposits to
an out-of-market competitor. Accounting for the proposed
divestiture, Peoples would become the largest depository
institution in the Concord market, controlling $380.7 million in deposits, representing 34.3 percent of market deposits. The HHI would increase 210 points to 1841. Fourteen
competitors would remain in the market after consummation, including three competitors other than Peoples that
would each control more than 10 percent of market deposits and four additional competitors that would each control
more than 5 percent of market deposits. Three de novo
entries into the Concord banking market since 1992 also
indicate that the market has characteristics that make it
attractive for entry.
The Board believes that the proposed divestitures and
the considerations discussed above mitigate the potentially
adverse effects of the proposal. The Department of Justice
also has reviewed the proposal and advised the Board that,
in light of the proposed divestitures, consummation of the
proposal would not likely have a significantly adverse
competitive effect in the Hillsborough, Manchester, or Concord banking markets, or in any other relevant banking
market.
For the reasons discussed in this order, and based on all
the facts of record, the Board concludes that consummation
of the proposal is not likely to result in any significantly
adverse effects on competition or on the concentration of
banking resources in the Hillsborough, Manchester, and
Concord banking markets, or any other relevant banking
market. Accordingly, the Board believes that competitive
factors are consistent with approval of this proposal.
tion of the acquisition. Peoples also has committed that, in the event it
is unsuccessful in completing any divestiture within 180 days of
consummation of the proposal, it will transfer the unsold branch(es) to
an independent trustee acceptable to the Board. The trustee will be
instructed to sell the branches promptly to competitively suitable
purchasers. BankAmerica Corporation, 78 Federal Reserve Bulletin
338 (1992).
12. The HHI in the Manchester banking market would increase by
194 points to 3081, and Peoples would remain the third largest
depository institution in the banking market, controlling deposits of
$492.3 million, representing 22.4 percent of market deposits. Nine
competitors would remain in the banking market after consummation
of the proposal, including three competitors, other than Peoples, that
would each control more than 10 percent of market deposits.
Legal Developments
Other Considerations
The BHC Act requires the Board, in acting on an application, to consider the financial and managerial resources and
future prospects of the companies and banks involved, the
convenience and needs of the communities to be served,
and certain supervisory factors. The Board has reviewed
these factors in light of the record, including supervisory
reports of examination assessing the financial and managerial resources of the organizations and financial information provided by Peoples. Based on all the facts of record,
the Board concludes that the financial and managerial
resources and future prospects of Peoples, CFX, and their
respective subsidiary banks are consistent with approval,
as are the other supervisory factors the Board must consider under section 3 of the BHC Act.
Convenience and Needs Considerations
The Board has carefully reviewed the effect of the proposal
on the convenience and needs of the communities to be
served in light of all the facts of record, including comments on the effects the proposal would have on the
communities to be served by the combined organization.
The Board has received a number of comments in favor of
the proposal. Commenters supporting the proposal commended Peoples's participation in community and economic development efforts in northern central Massachusetts. In particular, commenters noted that, since 1991,
Family Bank has played an active role in supporting and
financing many community development projects that help
meet the credit needs of low- and moderate-income
("LMI") individuals in the community of Haverhill, Massachusetts.
Several other commenters expressed concern that the
proposal would have an adverse effect on an economically
depressed area served by Orange Savings Bank in Massachusetts that is known as North Quabbin. Some of
the commenters contended that the lending activities of
Orange Savings Bank were inadequate to serve the credit
needs of North Quabbin, particularly the credit needs of
local small businesses.13
In reviewing the convenience and needs of the communities to be served, the Board notes that Peoples provides a
full range of financial services through its depository institutions. Peoples has indicated that it intends to enhance and
expand the banking services available to all of its CFX's
customers through increased commercial and residential
housing lending activities, and access to a larger network
of banking offices with extended banking hours, a full-service commercial real estate department, and expanded mu-
13. One commenter expressed concern that grants to the commenter's community organization from Orange Savings Bank would not be
continued after consummation of the proposal. Such agreements are
matters governed by private negotiations between the parties and are
not required by the CRA. Accordingly, the Board's review of the
proposal has focused on the programs and policies that Peoples has in
place to serve the credit needs of its communities.
353
nicipal financial services. Peoples also intends to provide
$3 million through its Community Mortgage Outreach
Program for mortgage loans to LMI and minority families
in the communities served by Orange Savings Bank, which
includes the North Quabbin area, and Safety Bank, and to
provide $1 million to establish a loan pool to be administered by an advisory board composed of North Quabbin
community representatives.
The Board has long held that consideration of the convenience and needs factor includes a review of the records of
the relevant depository institutions under the Community
Reinvestment Act (12 U.S.C. § 2901 et seq.) ("CRA"). As
provided in the CRA, the Board has evaluated this factor in
light of examinations by the primary federal supervisors of
the CRA performance records of the relevant institutions.
As noted, Peoples intends to merge CFX's banks into its
depository institutions after consummation of the proposal.
In this light, the Board has given substantial consideration
to the existing record of Peoples as reflected in the CRA
examinations of its subsidiaries, and the current programs
and policies of Peoples that help meet the credit needs of
all its service communities, including LMI neighborhoods.
CRA Performance Examinations. The Board has reviewed the examinations by the primary federal supervisor
of the CRA performance records of the relevant institutions. An institution's most recent CRA performance evaluation is a particularly important consideration in the applications process because it represents a detailed on-site
evaluation of the institution's overall record of performance under the CRA by its primary federal supervisor.14
Peoples's lead bank, Peoples Heritage Savings Bank,
Portland, Maine, received an "outstanding" rating from its
primary federal supervisor, the FDIC, at its most recent
CRA examination, as of April 1996.15 Family Bank, which
would serve North Quabbin after consummation of the
proposal, also received an "outstanding" rating at its most
recent CRA examination from the OTS, as of July 1997. l6
All of CFX's banks were rated "satisfactory" or better at
their most recent CRA performance evaluations by their
primary federal supervisors.
CRA Performance Record of Family Bank. Examiners
found that Family Bank's record of residential and commercial lending reflected a strong responsiveness to the
credit needs of its communities. In addition to originating
residential mortgages throughout its service communities,
Family Bank offers the Community Mortgage Outreach
14. The Statement of the Federal Financial Supervisory Agencies
Regarding the Community Reinvestment Act provides that a CRA
examination is an important and often controlling factor in the consideration of an institution's CRA record and that reports of these
examinations will be given great weight in the applications process.
54 Federal Register 13,742 and 13,745 (1989).
15. The bank has retained an "outstanding" CRA performance
rating since 1978 when federal supervisors began examining insured
depository institutions for CRA performance.
16. Manchester Bank's most recent CRA performance rating as of
January 1995 was "satisfactory." Peoples acquired Manchester Bank
in April 1996, and established a goal of improving its rating to
"outstanding" in 1998.
354 Federal Reserve Bulletin • May 1998
Program specifically to assist LMI and minority borrowers
in obtaining mortgage loans. The program features flexible
underwriting criteria and Family Bank has made more than
$6 million in loans since the program was established in
1994.
In addition, Family Bank assists in meeting the small
business credit needs of its communities. Examiners noted
that 23.8 percent of the volume of small business loans
made by the savings bank during the period covered by the
examination were originated in LMI census tracts. Family
Bank originated $84.4 million in small business loans
during this period which represented 61 percent of the total
dollar amount of its outstanding commercial loans. The
savings bank has been designated as a "Preferred Lender"
by the Small Business Administration and has participated
as a member of several loan pools designed to assist small
businesses, including the minority micro-loan pool of Lawrence and the Cambodian-American League of Lowell,
both in Massachusetts. Family Bank also has indicated that
it intends to assign two experienced commercial lending
officers with primary responsibility for North Quabbin,
consistent with its approach of permitting lending decisions to be made locally.
Examiners also found that Family Bank actively supports community development activities. The bank made
$5.2 million in loans to organizations involved in affordable housing, economic and community development, and
neighborhood stabilization activities during the period covered by the examination.
Conclusion on Convenience and Needs. The Board has
carefully considered all the facts of record, including the
comments received, responses to those comments, and the
CRA performance records of the insured depository institutions of Peoples and CFX, including relevant reports of
examination and other supervisory information. Based on a
review of the entire record and for the reasons discussed
above, the Board concludes that convenience and needs
considerations, including the CRA records of performance
of the institutions, are consistent with approval of the
proposal.
Conclusion
Based on all the facts of record, and for the reasons
discussed above, the Board has determined that the application should be, and hereby is, approved. The Board's
decision is specifically conditioned on compliance with all
the commitments made in the application, including the
proposed divestiture commitments discussed in this order.
The commitments relied on in reaching this decision shall
be deemed to be conditions imposed in writing by the
Board in connection with its findings and decision, and, as
such, may be enforced in proceedings under applicable
law.
The acquisition of CFX may not be consummated before
the fifteenth calendar day after the effective date of this
order, and the proposal may not be consummated later that
three months after the effective date of this order, unless
such period is extended for good cause by the Board or by
the Federal Reserve Bank of Boston, acting pursuant to
delegated authority.
By order of the Board of Governors, effective March 18,
1998.
Voting for this action: Chairman Greenspan, Vice Chair Rivlin, and
Governors Meyer and Gramlieh. Absent and not voting: Governors
Kelley, Phillips, and Ferguson.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
Regions Financial Corporation
Birmingham, Alabama
Order Approving Merger of Bank Holding Companies
and Acquisition of Banks
Regions Financial Corporation ("Regions"), Birmingham,
Alabama, a bank holding company within the meaning of
the Bank Holding Company Act ("BHC Act"), has requested the Board's approval under section 3 of the BHC
Act (12 U.S.C. § 1842) to merge with First State Corporation, Albany, Georgia ("FSC"), and thereby acquire FSC's
subsidiary banks: First Bank & Trust Company, Albany,
Georgia ("FB&T-Albany"), and First Bank & Trust Company, Cordele, Georgia ("FB&T-Cordele").
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published (63
Federal Register 5805 (1998)). The time for filing comments has expired, and the Board has considered the application and all comments received in light of the factors set
forth in the BHC Act.
Regions, with total consolidated assets of approximately
$24 billion, operates banks in Alabama, Florida, Georgia,
Louisiana, South Carolina, and Tennessee.1 Regions is the
largest commercial banking organization in Alabama, controlling deposits of approximately $8.8 billion, representing approximately 19.4 percent of total deposits in commercial banking organizations in the state ("state
deposits"). It is the sixth largest commercial banking organization in Georgia, controlling deposits of approximately
$3.8 billion, representing approximately 5.3 percent of
Georgia state deposits. FSC is the 17th largest commercial
banking organization in Georgia, controlling deposits of
$373.7 million, representing less than 1 percent of Georgia
state deposits. On consummation of the proposal, Regions
would remain the sixth largest commercial banking organization in Georgia.
Interstate Analysis
Section 3(d) of the BHC Act, as amended by Section 101
of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 ("Riegle-Neal Act"),2 allows the Board
to approve an application by a bank holding company to
1. All banking data are as of September 30, 1997.
2. Pub. L. No. 103-328, 108 Stat. 2338 (1994).
Legal Developments
acquire control of a bank located in a state other than the
home state of such bank holding company, if certain conditions are met. For purposes of the BHC Act, the home state
of Regions is Alabama, and FSC controls banks in Georgia.3 All of the conditions for an interstate acquisition
enumerated in section 3(d) are met in this case.4 In view of
all the facts of record, the Board is permitted to approve
the proposal under section 3(d) of the BHC Act.
Competitive, Financial and Managerial
Considerations
Regions and FSC do not compete in any banking market.
Based on all the facts of record, the Board concludes that
consummation of the proposal would not have a significantly adverse effect on competition in any relevant banking market.
The Board also has considered the financial and managerial resources and future prospects of Regions, FSC, and
their respective subsidiary banks in light of all the facts of
record, including supervisory reports of examination assessing the financial and managerial resources of the organizations and financial information provided by Regions.
The Board notes that Regions is in satisfactory financial
condition and would remain so after consummation of the
proposal. Reports of examination assessing the managerial
resources of Regions and its subsidiaries indicate that this
factor is consistent with approval. Based on all the facts of
record, the Board concludes that considerations related to
the financial and managerial resources and future prospects
of Regions, FSC, and their respective subsidiary banks are
consistent with approval under the BHC Act, as are other
supervisory factors the Board must consider under the
BHC Act.
Convenience and Needs Considerations
In acting on a proposal under section 3 of the BHC Act, the
Board is required to consider the effect of the proposal on
the convenience and needs of the community to be served.
The Board has long held that consideration of the convenience and needs factor includes a review of the records of
the relevant depository institutions under the Community
Reinvestment Act (12 U.S.C. § 2901 et seq.) ("CRA").
3. A bank holding company's home state is that state in which the
operation of the bank holding company's banking subsidiaries were
principally conducted on July 1, 1966, or the date on which the
company became a bank holding company, whichever is later.
12 U.S.C. § 1841(o)(4)(C).
4. See 12 U.S.C. §§ 1842(d)(l)(A) and (B) and 1842(d)(2)(A) and
(B). Regions is adequately capitalized and adequately managed, as
defined by the Riegle-Neal Act. FSC's banks have been in existence
and continuously operated for the minimum period required under
Georgia law. See Ga. Code Ann. § 7-1-628.3 (1997) (5 years). On
consummation of the proposal, Regions would control less than
10 percent of the total amount of deposits of insured depository
institutions in the United States and less than 30 percent of the total
amount of deposits of insured depository institutions in Georgia. All
other requirements of section 3(d) of the BHC Act also would be met
on consummation of the proposal.
355
CRA Performance Examinations. As provided in the
CRA, the Board has evaluated the convenience and needs
factor in light of examinations of the CRA performance
records of the relevant institutions by their primary federal
supervisors. An institution's most recent CRA performance evaluation is a particularly important consideration
in the application process, because it represents a detailed,
on-site evaluation of the institution's overall record of
performance under the CRA by its primary federal supervisor.5 The Board has reviewed the records of performance
of the subsidiary banks of Regions and FSC in light of all
the facts of record.
Regions's lead bank, which accounts for approximately
65 percent of the company's consolidated assets, received
an "outstanding" rating from its primary federal supervisor, the Federal Deposit Insurance Corporation ("FDIC"),
at its most recent evaluation for CRA performance, as of
September 1996. Regions's other banks each received a
"satisfactory" or better rating from their primary federal
supervisor at their most recent evaluation for CRA performance. In addition, FB&T-Albany and FB&T-Cordele received "outstanding" CRA performance ratings from the
FDIC as of July 1996 ("July 1996 Examination") and
January 1996, respectively.
Comments on Performance Record of FB&T-Albany.
The Board did not receive comments on the CRA performance records of Regions's banks. The Board received
comments generally contending that FB&T-Albany was
inadequately serving the credit needs of low- to moderateincome ("LMI") census tracts and the credit needs of
small businesses owned by African Americans.6 Commenter also indicated that FB&T-Albany did not have a
branch in an Albany census tract with a predominately
minority population.
In the July 1996 Examination, examiners concluded that
FB&T-Albany effectively assisted in meeting the credit
needs of its communities by originating residential, small
business and small farm loans, and that the bank's loans
were reasonably dispersed throughout its delineated communities, including LMI neighborhoods. Examiners particularly commended the bank's efforts in assisting the credit
needs of small businesses. As of July 1996, FB&T-Albany
had $63 million outstanding in small business loans, including eight loans under programs sponsored by the Small
Business Administration that totalled approximately
$1.1 million. The bank also allocated $1 million for a loan
program administered by the Albany Dougherty Inner City
Authority for the purpose of providing loans at belowmarket rates to improve inner city businesses.
5. The Statement of the Federal Financial Supervisory Agencies
Regarding the Community Reinvestment Act provides that a CRA
examination is an important and often controlling factor in the consideration of an institution's CRA record and that reports of these
examinations will be given great weight in the applications process.
See 54 Federal Register 13.742 and 13.745 (1989).
6. An individual ("Commenter") submitted comments on behalf of
Business Research and Development & Associates and the AlbanyDougherty National Association for the Advancement of Colored
People.
356
Federal Reserve Bulletin • May 1998
Examiners found no evidence of practices under the
bank's loan policies and procedures that discouraged applications for the types of credit set forth in the CRA statement and no evidence of discriminatory or other illegal
credit practices.7 FB&T-Albany's branches also were found
to be readily accessible to all areas of its delineated communities. Examiners favorably noted that the bank had six
full-service branches in Albany and that four of the
branches were in or near LMI areas.
Conclusion on Convenience and Meeds. The Board has
carefully considered the entire record in its review of the
convenience and needs factor under the BHC Act.8 Based
on all the facts of record, including Commenter's submission and the relevant reports of examination, the Board
concludes that considerations relating to convenience and
needs, including the CRA performance records of the
relevant institutions, are consistent with approval.
Conclusion
Based on the foregoing and all the facts of record, the
Board has determined that the application should be, and
hereby is, approved.9 The Board's approval of the proposal
is specifically conditioned on compliance by Regions with
all the commitments made in connection with this application. For purposes of this action, the commitments and
7. Although examiners noted technical violations of the Fair Housing Act, they concluded that the violations did nol indicate any
discriminatory practices and that bank was in compliance with the
substantive provisions of anti-discrimination laws and regulations.
Bank has initiated steps to correct the violations.
8. Commenter also alleges that FB&T-Albany does not have a
sufficient number of African Americans on its board of directors and
in management. The BHC Act does not authorize the Board to
adjudicate disputes that arise in areas of employment discrimination.
Under the regulations of the Department of Labor. FSC and FB&TAlbany are required to file reports with the Equal Employment Opportunity Commission ("EEOC") covering all employees, and the EEOC
has jurisdiction for determining whether companies are in compliance
with equal employment opportunity statutes. See 41 C.F.R. 60-1.7(a),
60-1.40.
9. Commenter has requested that the Board hold a public hearing or
meeting on the application. Section 3(b) of the BHC Act does not
require the Board to hold a public hearing on an application unless the
appropriate supervisory authority for the bank to be acquired makes a
timely written recommendation of denial. The Board has not received
such a recommendation from the FDIC or any state supervisory
authority.
Under its rules, the Board also may, in its discretion, hold a public
hearing or meeting on an application to acquire a bank if necessary or
appropriate to clarify factual issues related to the application and to
provide an opportunity for testimony, if appropriate. 12 C.F.R.
225.16(e). The Board has carefully considered Commenter's request
in light of all the facts of record. In the Board's view, Commenter has
had ample opportunity to submit his views, and has submitted written
comments that have been carefully considered by the Board in acting
on the application. Commenter's request fails to demonstrate why his
written presentation does not adequately present his evidence, allegations, or views. Commenter also fails to indicate why a public meeting
or hearing is necessary for the proper presentation or consideration of
his views. For these reasons, and based on all the facts of record, the
Board has determined that a public hearing or meeting is not required
or warranted in this case. Accordingly, the request for a hearing or
meeting on the proposal is hereby denied.
conditions relied on in reaching this decision are deemed to
be conditions imposed in writing by the Board and, as
such, may be enforced in proceedings under applicable
law.
The proposal shall not be consummated before the fifteenth calendar day following the effective date of this
order, or later than three months after the effective date of
this order, unless such period is extended for good cause by
the Board or by the Federal Reserve Bank of Atlanta,
acting pursuant to delegated authority.
By order of the Board of Governors, effective March 11,
1998.
Voting for this action: Chairman Greenspan, and Governors
Phillips, Meyer, Ferguson, and Gramlich. Absent and not voting:
Vice Chair Rivlin and Governor Kelley.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
Orders Issued Under Section 4 of the Bank Holding
Company Act
Banco Bilbao Vizcaya, S.A.
Bilbao, Spain
Order Approving Notice to Engage in Certain
Nonbanking Activities
Banco Bilbao Vizcaya, S.A., Bilbao, Spain ("BBV"), a
foreign bank subject to the provisions of the Bank Holding
Company Act ("BHC Act"), has requested the Board's
approval under section 4(c)(8) of the BHC Act (12 U.S.C.
§ 1843(c)(8)) and section 225.24 of the Board's Regulation Y (12 C.F.R. 225.24) to engage in the following
nonbanking activities through its wholly owned subsidiary,
BBV Latlnvest Securities Inc., New York, New York
("Company"):1
(1) Underwriting and dealing in, to a limited extent, all
types of debt and equity securities, other than ownership
interests in open-end investment companies;
(2) Extending credit and servicing loans, in accordance
with section 225.28(b)(l) of Regulation Y (12 C.F.R.
225.28(b)(l));
(3) Providing financial and investment advisory services, in accordance with section 225.28(b)(6) of Regulation Y (12 C.F.R. 225.28(b)(6));
(4) Providing securities brokerage services, in accordance with section 225.28(b)(7)(i) of Regulation Y
(12 C.F.R. 225.28(b)(7)(i));
(5) Buying and selling all types of securities on the order
of customers as a "riskless principal," in accordance
1. BBV previously received approval under section 4(c)(9) of the
BHC Act to acquire Company and to engage temporarily in various
nonbanking activities through Company. See Letter dated October 15,
1995, from Jennifer J. Johnson, Deputy Secretary of the Board, to
Eileen P. Matthews, Esq.
Legal Developments
with section 225.28(b)(7)(ii) of Regulation Y (12 C.F.R.
225.28(b)(7)(ii);
(6) Acting as agent in the private placement of all types
of securities, in accordance with section 225.28(b)(7)(iii)
of Regulation Y (12 C.F.R. 225.28(b)(7)(iii));
(7) Providing other transactional services, in accordance
with section 225.28(b)(7)(v) of Regulation Y (12 C.F.R.
225.28(b)(7)(v)); and
(8) Underwriting and dealing in obligations of the United
States and Canada, general obligations of U.S. states,
Canadian provinces, and their political subdivisions, and
other obligations in which state member banks may
underwrite and deal under 12 U.S.C. §§ 335 and 24(7)
("bank-eligible securities"), in accordance with section
225.28(b)(8)(i)
of Regulation
Y (12
C.F.R.
225.28(b)(8)(i)).
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published (62
Federal Register 7231 (1997)). The time for filing comments has expired, and the Board has considered the notice
and all comments received in light of the factors set forth
in section 4(c)(8) of the BHC Act.
BBV, with total consolidated assets of approximately
$129.6 billion, is the second largest banking organization
in Spain.2 In the United States, BBV operates a branch and
a representative office in New York, New York; two agencies in Miami, Florida; and a branch and an insured nonmember bank in San Juan, Puerto Rico. Company is registered as a broker-dealer with the Securities and Exchange
Commission ("SEC") under the Securities Exchange Act
of 1934 (15 U.S.C. § 78a et seq.) and is a member of the
National Association of Securities Dealers, Inc.
("NASD"). Accordingly, Company is subject to the recordkeeping and reporting obligations, fiduciary standards,
and other requirements of the Securities Exchange Act of
1934, the SEC, and the NASD.
Underwriting and Dealing in Bank-Ineligible
Securities
The Board has determined that—subject to the framework
of prudential limitations established in previous decisions
to address the potential for conflicts of interests, unsound
banking practices, or other adverse eifects—underwriting
and dealing in bank-ineligible securities is so closely related to banking as to be a proper incident thereto within
the meaning of section 4(c)(8) of the BHC Act.3 The Board
2. Asset data are as of September 30, 1997, and are based on
exchange rates then applicable. Ranking data are as of June 30, 1997.
3. See Canadian Imperial Bank of Commerce, et al, 76 Federal
Reserve Bulletin 158 (1990); J.P. Morgan & Co. Inc.. el. al, 75
Federal Reserve Bulletin 192 (1989), aff'd sub nom. Securities Industry Ass'n v. Board of Governors of the Federal Reserve System, 900
F.2d 360 (D.C. Cir. 1990); Citicorp, 73 Federal Reserve Bulletin 473
(1987), aff'd sub nom. Securities Industry Ass'n v. Board of Governors of the Federal Reserve System, 839 F.2d 47 (2d Cir.). cert,
denied, 486 U.S. 1059 (1988), as modified by Review of Restrictions
on Director, Officer and Employee Interlocks, Cross-Marketing Activities, and the Purchase and Sale of Financial Assets Between a Sec
357
also has determined that underwriting and dealing in bankineligible securities is consistent with section 20 of the
Glass-Steagall Act (12 U.S.C. § 377), provided that the
company engaged in the activity derives no more than
25 percent of its gross revenues from underwriting
and dealing in bank-ineligible securities over a two-year
period.4
BBV has committed that Company will conduct its
underwriting and dealing activities using the methods and
procedures and subject to the prudential limitations established by the Board in the Section 20 Orders. BBV also has
committed that Company will conduct its bank-ineligible
securities underwriting and dealing activities subject to the
Board's revenue restriction. As a condition of this order,
BBV is required to conduct its bank-ineligible securities
activities subject to the revenue restrictions and Operating
Standards established for section 20 subsidiaries ("Operating Standards"). 5
Activities Approved by Regulation
As noted above, BBV proposes that Company engage in
providing credit and servicing loans; financial and investment advisory activities; securities brokerage, riskless principal, private placement, and other transactional activities;
and bank-eligible securities underwriting and dealing activities. The Board has determined by regulation that each of
these activities is closely related to banking for purposes of
section 4(c)(8) of the BHC Act.6 BBV has committed that
Company will conduct these activities in accordance with
the limitations set forth in Regulation Y and the Board's
orders and interpretations relating to each of the activities.
Proper Incident to Banking Standard
In order to approve this notice, the Board also must consider whether performance of the proposed activities is a
proper incident to banking, that is, whether the activities
proposed "can reasonably be expected to produce benefits
lion 20 Subsidiary and an Affiliated Bank or Thrift, 61 Federal
Register 57,679 (1996), and Amendments to Restrictions in the
Board's Section 20 Orders, 62 Federal Register 45,295 (1997) (collectively, "Section 20 Orders").
4. Compliance with the revenue limitation shall be calculated in
accordance with the method stated in the Section 20 Orders, as
modified by the Order Approving Modifications to the Section 20
Orders, 75 Federal Reserve Bulletin 751 (1989); 10 Percent Revenue
Limit on Bank-Ineligible Activities of Subsidiaries of Bank Holding
Companies Engage in Underwriting and Dealing in Securities, 61
Federal Register 48,953 (1996); and Revenue Limit on Bank-Ineligible
Activities of Subsidiaries of Bank Holding Companies Engaged in
Underwriting and Dealing in Securities. 61 Federal Register 68,750
(1996) (collectively, "Modification Orders").
5. Company may provide services that are necessary incidents to the
proposed underwriting and dealing activities. Unless Company receives specific approval under section 4(c)(8) of the BHC Act to
conduct the activities independently, any revenues from the incidental
activities must be treated as ineligible revenues subject to the Board's
revenue limitation.
6. See 12 C.F.R. 225.28(b)(l), (b)(6), (b)(7)(i), (b)(7)(ii). (b)(7)(iii),
(b)(7)(v), and (b)(8)(i).
358
Federal Reserve Bulletin • May 1998
to the public . . . that outweigh possible adverse effects,
such as undue concentration of resources, decreased or
unfair competition, conflicts of interests, or unsound banking practices." 7 As part of its evaluation of these factors,
the Board considers the financial condition and managerial
resources of the notificant and its subsidiaries and the effect
the transaction would have on such resources.8 The Board
notes that BBV's capital ratios satisfy applicable riskbased standards under the Basle Accord and are considered
equivalent to the capital levels that would be required of a
U.S. banking organization. The Board also has reviewed
the capitalization of BBV and Company in accordance
with the standards set forth in the Section 20 Orders and
finds the capitalization of each to be consistent with approval of the proposal. The Board has reviewed these
factors in light of all the facts of record, including BBV's
projection of the volume of Company's underwriting and
dealing activities in bank-ineligible securities.
On the basis of its supervisory experience with BBV, the
results of a recent infrastructure review of Company, the
commitments provided in this case, and the proposed management of Company, the Board has determined that BBV
and Company have established policies and procedures to
ensure compliance with this order and the Section 20
Orders, including computer, audit, and accounting systems,
internal risk management controls, and the necessary operational and managerial infrastructure. The Board also has
reviewed other aspects of the managerial resources of the
entities involved in the proposal, including the expected
effect of the proposal on such resources. On the basis of the
foregoing and all the facts of record, the Board concludes
that financial and managerial considerations are consistent
with approval of the notice.
The Board expects, moreover, that consummation of the
proposal would provide added convenience to BBV's customers and increase the level of competition among existing providers of these services. As noted above, BBV has
committed that Company will conduct its bank-ineligible
securities underwriting and dealing activities in accordance
with the prudential framework established by the Board's
Section 20 Orders, including the Operating Standards. Under the framework and conditions established in this order
and the Section 20 Orders, the Board concludes that Company's proposed limited conduct of bank-ineligible securities underwriting and dealing activities is not likely to
result in significantly adverse effects, such as undue concentration of resources, decreased or unfair competition,
conflicts of interests, or unsound banking practices that
would outweigh the public benefits of the proposal. Similarly, the Board finds no evidence that Company's private
placement, riskless principal, and other activities—
conducted under the framework and conditions established
in this order and Regulation Y—would likely result in any
significantly adverse effects that would outweigh the public
7. 12U.S.C. § 1843(c)(8).
8. See 12 C.F.R. 225.24; see also The Fuji Bank, Limited, 75
Federal Reserve Bulletin 94 (1989); Bayerische Vereinsbank AG, 73
Federal Reserve Bulletin 155 (1987).
benefits of the proposal. Accordingly, the Board has determined that performance of the proposed activities by BBV
can reasonably be expected to produce public benefits that
outweigh possible adverse effects under the proper incident
to banking standard of section 4(c)(8) of the BHC Act.
Conclusion
Based on all the facts of record, and subject to the commitments made by BBV, as well as the terms and conditions
set forth in this order and in the Board's orders and
regulations noted above, including the Operating Standards, the Board has determined that the notice should be,
and hereby is, approved. Underwriting and dealing in any
manner other than as approved in this order and the Section 20 Orders, as modified by the Modification Orders, is
not authorized.
The Board's determination also is subject to all the terms
and conditions set forth in Regulation Y, including those in
sections 225.7 and 225.25(c) (12 C.F.R. 225.7 and
225.25(c)), and to the Board's authority to require modification or termination of the activities of a bank holding
company or any of its subsidiaries as the Board finds
necessary to assure compliance with, and to prevent evasion of, the provisions of the BHC Act and the Board's
regulations and orders issued thereunder. In approving the
proposal, the Board has relied on all the facts of record and
all the representations and commitments made by BBV.
These commitments and conditions shall be deemed to be
conditions imposed in writing by the Board in connection
with its findings and decisions, and may be enforced in
proceedings under applicable law.
This transaction shall not be consummated later than
three months after the effective date of this order, unless
such period is extended for good cause by the Board or by
the Federal Reserve Bank of New York, acting pursuant to
delegated authority.
By order of the Board of Governors, effective March 23,
1998.
Voting for this action; Chairman Greenspan, Vice Chair Rivlin, and
Governors Kelley, Phillips, Meyer, and Ferguson. Absent and not
voting: Governor Gramlich.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
Commerce Bancorp, Inc.
Cherry Hill, New Jersey
Order Approving Notice to Engage in Nonbanking
Activities
Commerce Bancorp, Inc. ("Commerce"), a bank holding
company within the meaning of the Bank Holding Company Act ("BHC Act"), has requested the Board's approval under section 4(c)(8) of the BHC Act (12U.S.C.
§ 1843(c)(8)) and section 225.24 of the Board's Regulation Y (12 C.F.R. 225.24) to acquire A.H. Williams & Co.,
Legal Developments
Inc., Philadelphia, Pennsylvania ("Company"), and
thereby engage de novo in the following activities:1
(1) Underwriting and dealing in, to a limited extent,
certain municipal revenue bonds (including certain unrated municipal revenue bonds and private ownership
industrial development bonds issued for traditional government services), 1-4 family mortgage-related securities, consumer receivable-related securities, and commercial
paper
(collectively,
"bank-ineligible
securities");
(2) Providing services that are usual in connection with
making, acquiring, brokering, or servicing loans or other
extensions of credit, pursuant to section 225.28(b)(l) of
Regulation Y (12 C.F.R. 225.28(b)(l));
(3) Leasing personal or real property or acting as agent,
broker, or adviser in leasing such property, pursuant to
section 225.28(b)(3) of Regulation Y (12 C.F.R.
225.28(b)(3));
(4) Providing financial and investment advisory services, pursuant to section 225.28(b)(6) of Regulation Y
(12 C.F.R. 225.28(b)(6));
(5) Providing securities brokerage, private placement,
and riskless principal services, pursuant to section
225.28(b)(7) of Regulation Y (12 C.F.R. 225.28(b)(7));
(6) Underwriting and dealing in government obligations
and money market instruments in which state member
banks may underwrite and deal under 12 U.S.C. §§ 335
and 24(7) ("bank-eligible securities") and engaging in
investing and trading activities as a principal, pursuant
to section 225.28(b)(8)(i) and (ii) of Regulation Y
(12 C.F.R. 225.28(b)(8)(i) and (ii)); and
(7) Providing management consulting and employee
benefits counseling services, pursuant to section 225.28(b)(9) of Regulation Y (12 C.F.R.
225.28(b)(9)).
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published (63
Federal Register 4267 (1998)). The time for filing comments has expired, and the Board has considered the notice
and all comments received in light of the factors set forth
in section 4(c)(8) of the BHC Act.
Commerce, with total consolidated assets of approximately $4 billion, operates subsidiary banks in New Jersey
and Pennsylvania.2 Company is and, following consummation of the proposal, will continue to be registered as a
broker-dealer with the Securities and Exchange Commission ("SEC") under the Securities Exchange Act of 1934
(15 U.S.C. § 78a et seq.) ("1934 Act"), and is a member of
the National Association of Securities Dealers, Inc.
("NASD"). Accordingly, Company is and will remain
subject to the recordkeeping and reporting obligations,
fiduciary standards, and other requirements of the 1934
Act, the SEC, and the NASD.
1. After consummation of the proposal, Commerce would change
the name of Company to Commerce Capital Markets, Inc.
2. Asset data are as of December 31, 1997.
359
Underwriting and Dealing Activities
The Board has determined—subject to the framework of
prudential limitations to address the potential for conflicts
of interests, unsound banking practices, or other adverse
effects—that underwriting and dealing in bank-ineligible
securities are so closely related to banking as to be a proper
incident thereto within the meaning of section 4(c)(8) of
the BHC Act.3
The Board also has determined that conduct of these
activities is consistent with section 20 of the Glass-Steagall
Act (12 U.S.C. § 377), provided that the company engaged
in underwriting and dealing activities derives no more than
25 percent of its gross revenues from underwriting and
dealing in bank-ineligible securities over a two-year period.4 Commerce has committed that Company will conduct
its bank-ineligible securities underwriting and dealing activities subject to the Board's 25-percent revenue limit.5 As
a condition of this order, Commerce also would be required
to conduct its bank-ineligible securities activities subject to
the Operating Standards for section 20 subsidiaries.6
Other Activities Approved by Regulation
The Board previously has determined by regulation that
activities related to extending credit; leasing personal or
real property; financial and investment advisory activities;
3. See Citicorp, et at, 73 Federal Reserve Bulletin 473 (1987), aff'd
sub norm. Securities Industry Ass'n v. Board of Governors of the
Federal Reserve System, 839 F.2d 47 (2d Cir. 1988), cert, denied, 486
U.S. 1059 (1988); as modified by Review of Restrictions on Director,
Officer and Employee Interlocks, Cross-Marketing Activities, and the
Purchase and Sale of Financial Assets between a Section 20 Subsidiary and an Affiliated Bank or Thrift, 61 Federal Register 57,679
(1996), and Amendments to Restrictions in the Board's Section 20
Orders, 62 Federal Register 45,295 (1997) (collectively, "Section 20
Orders").
4. Compliance with the revenue limitation shall be calculated in
accordance with the method stated in the Section 20 Orders, as
modified by the Order Approving Modifications to the Section 20
Orders, 75 Federal Reserve Bulletin 751 (1989), and JO Percent
Revenue Limit on Bank-Ineligible Activities of Subsidiaries of Bank
Holding Companies Engaged in Underwriting and Dealing in Securities, 61 Federal Register 48,953 (1996), and Revenue Limit on BankIneligible Activities of Subsidiaries of Bank Holding Companies Engaged in Underwriting and Dealing in Securities, 61 Federal Register
68,750 (1996) (collectively, "Modification Orders").
5. Company may provide services that are necessary incidents to the
proposed underwriting and dealing activities. Unless Commerce receives specific approval under section 4(c)(8) of the BHC Act to
conduct the activities independently. Company must treat any revenues from the incidental activities as ineligible revenues subject to the
Board's revenue limitation.
6. 12 C.F.R. 225.200. Company proposes to complete the underwriting of five issues of securities that are not within the scope of
activities for which Commerce is seeking approval. Company agreed
to perform these five underwritings prior to agreeing to be acquired
under the proposal, and the underwriting of all these securities is
expected to be completed within 120 days after consummation of the
proposal. Company may complete these underwritings and must treat
all revenue derived from any of these underwritings that are completed after consummation of the proposal as bank-ineligible revenue
subject to the Board's revenue limitations.
360 Federal Reserve Bulletin • May 1998
securities brokerage, riskless principal, and private placement services; underwriting and dealing in bank-eligible
securities; investment and trading as a principal; and management consulting are closely related to banking within
the meaning of section 4(c)(8) of the BHC Act.7 Commerce has committed that it will conduct each of these
activities in accordance with the BHC Act, Regulation Y,
and the relevant Board interpretations and orders.
Proper Incident to Banking Standard
In order to approve the proposal, the Board also must
determine that the proposed activities are a proper incident
to banking, that is, that the proposed transaction "can
reasonably be expected to produce benefits to the public . . .
that outweigh possible adverse effects, such as undue concentration of resources, decreased or unfair competition,
conflicts of interests, or unsound banking practices."8 As
part of its evaluation of these factors, the Board considers
the financial condition and managerial resources of the
notificant and its subsidiaries and the effect the transaction
would have on such resources.9 The Board has carefully
examined the financial resources, management expertise,
and risk management policies of Commerce and its subsidiaries. Based on all the facts of record, the Board concludes
that financial and managerial considerations are consistent
with approval.
The Board has carefully considered the competitive effects of the proposal. To the extent that Commerce and
Company offer different types of products and services, the
proposal would result in no loss of competition. In those
markets in which Commerce's and Company's products
and services overlap, such as municipal finance underwriting, there are numerous existing and potential competitors.
Consummation of the proposal, therefore, would have a de
minimis effect on competition in the market for these
services, and the Board has concluded that the proposal
would not result in any significantly adverse competitive
effects in any relevant market.
The Board expects that the proposal would provide
added convenience and efficiency to customers of Commerce and Company by expanding the range of products
and services available to states and municipalities in the
region Company would serve. As noted above, Commerce
has committed that Company will conduct its bankineligible securities underwriting and dealing activities in
accordance with the prudential framework described above.
Under the framework and conditions described in this
order, the Board concludes that the acquisition of Company
by Commerce and the conduct by Commerce of the proposed limited bank-ineligible securities underwriting and
dealing activities is not likely to result in significantly
adverse effects, such as undue concentration of resources,
decreased or unfair competition, conflicts of interests, or
unsound banking practices that would outweigh the public
benefits of the proposal. Similarly, the Board finds no
evidence that Company's riskless principal, private placement, and other nonbanking activities—conducted under
the framework and conditions established in this order and
Regulation Y—would likely result in any significantly
adverse effects that would outweigh the public benefits of
the proposal. Accordingly, the Board has determined that
performance of the proposed activities by Commerce is a
proper incident to banking for purposes of section 4(c)(8)
of the BHC Act.
Conclusion
On the basis of all the facts of record, the Board has
determined that the notice should be, and hereby is, approved, subject to all the terms and conditions described in
this order. The Board's approval of the proposal extends
only to activities conducted within the limitations of this
order, including the Board's reservation of authority to
establish additional limitations to ensure that Commerce's
activities are consistent with safety and soundness, avoidance of conflicts of interests, and other relevant considerations under the BHC Act. Underwriting and dealing in
any manner other than as approved in this order is not
within the scope of the Board's approval and is not authorized for Commerce.
The Board's determination is subject to all the terms and
conditions set forth in Regulation Y, including those in
sections 225.7 and 225.25(c) of Regulation Y (12 C.F.R.
225.7 and 225.25(c)), and to the Board's authority to
require such modification or termination of the activities of
a bank holding company or any of its subsidiaries as the
Board finds necessary to ensure compliance with, and to
prevent evasion of, the provisions of the BHC Act and the
Board's regulations and orders issued thereunder. The
Board's decision is specifically conditioned on compliance
with all the commitments made in connection with this
notice, including the commitments discussed in this order,
and the conditions set forth in this order and the abovenoted Board regulations and orders. These commitments
and conditions are deemed to be conditions imposed in
writing by the Board in connection with its findings and
decisions, and, as such, may be enforced in proceedings
under applicable law.
The proposal shall not be consummated later than three
months after the effective date of this order, unless such
period is extended for good cause by the Board or by the
Federal Reserve Bank of Philadelphia, acting pursuant to
delegated authority.
By order of the Board of Governors, effective March 23,
1998.
Voting for this action: Chairman Greenspan, Vice Chair Rivlin, and
Governors Kelley, Phillips, Meyer, and Ferguson. Absent and not
voting: Governor Gramlich.
7. See 12 C.F.R. 225.28(b)(l), (3), (6), (7). (8)(i) and (ii), and (9).
8. See 12 U.S.C. § 1843(c)(8).
9. See 12 C.F.R. 225.26.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
Legal Developments
Dresdner Bank AG
Frankfurt, Germany
Oechsle International Advisors, L.P.
Boston, Massachusetts
RCM Capital Management, L.L.C.
San Francisco, California
Order Approving Notice to Engage in Nonbanking
Activities
Dresdner Bank AG, Frankfurt, Germany ("Dresdner"), a
foreign bank subject to the provisions of the Bank Holding
Company Act ("BHC Act"), has requested the Board's
approval under section 4(c)(8) of the BHC Act (12 U.S.C.
§ 1843(c)(8)) and section 225.24 of the Board's Regulation Y (12 C.F.R. 225.24) to engage de novo through its
nonbanking subsidiaries, Oechsle International Advisors,
L.P., Boston, Massachusetts, and RCM Capital Management, L.L.C, San Francisco, California (together, "Companies"), in acting as commodity pool operators ("CPOs")
for private limited partnerships organized as commodity
pools investing in assets in which a bank holding company
is permitted to invest ("Partnerships").
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published (63
Federal Register 229 (1998)). The time for filing comments has expired, and the Board has considered the proposal and all comments received in light of the factors set
forth in section 4(c)(8) of the BHC Act.
Dresdner, with consolidated assets of approximately
$358.8 billion, is the second largest banking organization
in Germany.1 In the United States, Dresdner operates
branches in New York, New York, and Chicago, Illinois,
and an agency in Los Angeles, California.2 Dresdner also
controls several subsidiaries that engage in various nonbanking activities in the United States.
Dresdner proposes that Companies provide administrative services and serve as investment advisor and sole
general partner to Partnerships.3 Companies would privately place Partnership interests with "accredited investors," as that term is denned in the rules of the Securities
and Exchange Commission ("SEC"). 4 In connection with
providing investment advice to Partnerships, Companies
1. Asset and ranking data are as of December 31, 1996, and use
exchange rates then in effect.
2. Dresdner Bank Lateinamerika AG, Hamburg, Germany, a wholly
owned subsidiary of Dresdner, also operates an agency in Miami,
Florida.
3. Dresdner previously has received approval to engage in private
placement, investment advisory, and other transnational activities. See
Letter dated June 23, 1997, from Jay Bernstein, Bank Supervision
Officer, to Hartmut Grossman; Dresdner Bank AG, 82 Federal Reserve Bulletin 850 (1996). Dresdner also has received approval to
provide administrative services to closed-end investment companies.
See Dresdner Bank AG, 82 Federal Reserve Bulletin 676 (1996).
4. SEC Regulation D, 17 C.F.R. 230.501. Partnerships would not be
registered as investment companies under the Investment Company
Act of 1940 (15 U.S.C. § 80a-l et seq.).
361
would be registered as commodity trading advisors with
the Commodity Futures Trading Commission ("CFTC")
and the National Futures Association ("NFA"). Because
Partnerships would hold positions in commodity futures
contracts and would be controlled by Companies, Companies also must register as CPOs with the CFTC and the
NFA. Companies would be subject to the record keeping,
reporting, fiduciary standards, and other requirements of
the Commodity Exchange Act (7 U.S.C. § 2 et seq.), the
CFTC, and the NFA.
The Board previously has determined by order that acting as a CPO for and controlling a private limited partnership that invests solely in investments that a bank holding
company is permitted to make directly are activities that
are closely related to banking and therefore permissible for
bank holding companies.5 Dresdner has stated that all the
investments of Partnerships would be permissible for a
bank holding company to make directly.
In order to approve this proposal, the Board must determine that the proposed transaction "can reasonably be
expected to produce benefits to the public . . . that outweigh possible adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts
of interests, or unsound banking practices." 6 Previously,
the Board has relied on a number of commitments that
were offered by bank holding companies to address potential adverse effects that could arise from acting as general
partner to private investment partnerships.7 The Board has
reviewed these commitments in the context of this notice.
Several of the commitments relied on by the Board in
the past were offered to mitigate potential adverse financial
effects associated with the proposed activities by limiting
the exposure of the bank holding company to financial
risks associated with the partnerships' activities and by
requiring the maintenance of corporate separateness between the partnership and the bank holding company and
its affiliates. To address these concerns, the Board has
determined that in the event that a bank holding company
reports its investment in a partnership on other than a
consolidated basis, the bank holding company is required
to include, when calculating its consolidated regulatory
capital ratios, an amount of the assets in the denominator
that is equal to all liabilities reported by the partnership.
The Board also has determined that bank holding companies may not directly or indirectly guarantee the obligations of a subsidiary acting as general partner to the partnerships or enter into any guarantee, indemnity, or losssharing agreement or any similar arrangement intended to
protect an investor in any partnership from any type of loss
associated with an interest in the partnership.
The Board notes, furthermore, that transactions between
Dresdner's subsidiary banks and Partnerships would continue to be governed by sections 23A and 23B of the
5. See The Bessemer Group, Inc., 82 Federal Reserve Bulletin 569
(1996) ("Bessemer"); Meridian Bancorp, Inc., 80 Federal Reserve
Bulletin 736(1994).
6. See 12 U.S.C. § 1843(c)(8).
7. See Bessemer.
362
Federal Reserve Bulletin • May 1998
Federal Reserve Act.8 In addition, to ensure compliance
with the Glass-Steagall Act, the Board will continue to
rely on the restriction prohibiting partnerships controlled
by bank holding companies from offering interests more
than four times a year.9
In this case, the Board also has reviewed Dresdner's risk
management systems and has concluded that they are adequate to address the financial risks associated with the
proposed activities. The Board expects Dresdner to apply
prudent risk and financial management policies to the
proposed activities and maintain the legal separateness of
the general partner from its bank holding company affiliates. Examinations of Dresdner would continue to check
the adequacy of its systems for monitoring and assessing
the financial risks associated with this activity.
As part of its evaluation of the public interest factors, the
Board considers the financial condition and managerial
resources of the notificant and its subsidiaries and the effect
the proposed transaction would have on such resources.10
The Board also has reviewed other aspects of the financial
condition and resources of Dresdner, including the effect of
this proposal on the financial condition and resources of
Dresdner. The Board notes that Dresdner's capital ratios
meet applicable risk-based capital standards under the
Basle Accord and are equivalent to the capital levels that
would be required of a U.S. banking organization. Based
on all the facts of record, the Board concludes that financial
and managerial considerations are consistent with approval.
The Board expects that the conduct by Dresdner of the
proposed activities de novo would enhance market competition and provide greater convenience to Dresdner's customers. The Board also expects that the proposed transaction would benefit the public by increasing the number of
commodity pools available to investors.
For the reasons discussed above, and in reliance on all
the facts of record, including the commitments made by
Dresdner and subject to the conditions in this order, the
Board concludes that the conduct of the proposed activities
by Dresdner is not likely to result in significantly adverse
effects that would outweigh the public benefits of the
proposal. Accordingly, the Board has determined that per-
formance of the proposed activities by Dresdner is a proper
incident to banking for purposes of section 4(c)(8) of the
BHC Act.
Conclusion
Based on the foregoing and all the facts of record, including the commitments discussed in this order and all other
commitments and representations made by Dresdner in
connection with this notice, and subject to the terms and
conditions set forth in this order, the Board has determined
that the notice should be, and hereby is, approved. The
Board's determination is subject to all the terms and conditions set forth in Regulation Y, including those in sections 225.7 and 225.25(c) (12 C.F.R. 225.7 and 225.25(c)),
and to the Board's authority to require modification or
termination of the activities of a bank holding company or
any of its subsidiaries as the Board finds necessary to
assure compliance with and to prevent evasion of the
provisions of the BHC Act and the Board's regulations and
orders issued thereunder. The Board's decision specifically
is conditioned on Dresdner's compliance with the commitments and representations made in connection with this
notice, including the commitments and conditions discussed in this order. The commitments and conditions shall
be deemed to be conditions imposed in writing by the
Board in connection with its findings and decisions and
may be enforced in proceedings under applicable law.
This transaction shall not be consummated later than
three months after the effective date of this order unless
such period is extended for good cause by the Board or by
the Federal Reserve Bank of New York, acting pursuant to
delegated authority.
By order of the Board of Governors, effective March 11,
1998.
Voting for this action: Chairman Greenspan and Governors Phillips, Meyer, Ferguson, and Gramlich. Absent and not voting:
Vice Chair Rivlin and Governor Kelley.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
Appendix
8. A number of the commitments offered by bank holding companies in past cases are addressed by applicable statutes and regulations,
such as the limitations on inter-affiliate transactions set out in sections 23A and 23B of the Federal Reserve Act and the standards
governing control or the definition of the activities under the BHC Act
and Regulation Y. These commitments are unnecessary because they
restate certain statutory and regulatory obligations and confirm Board
interpretations that, by force of law, govern the activities of Dresdner
and Partnerships. Many other commitments previously relied on by
the Board in similar cases were restrictions that governed private
placement activities. In connection with its recent revision to Regulation Y, the Board removed those restrictions from all bank holding
companies conducting private placement activities.
9. The commitments relied on by the Board in this case are listed in
the Appendix.
10. See 12 C.F.R. 225.26; see also The Fuji Bank, Limited, 75
Federal Reserve Bulletin 94 (1989); Bayerische Vereinsbank AG, 73
Federal Reserve Bulletin 155 (1987).
Commitments provided by Dresdner in connection with
acting as general partner of private limited partnerships.
(1) Dresdner, directly or indirectly, will not guarantee the
obligations of Partnerships or a subsidiary acting as general
partner or commodity pool operator of Partnerships, and,
directly or indirectly, will not enter into any guarantee,
indemnity, or loss-sharing agreement or any similar arrangement intended to protect an investor in any Partnership from any type of loss associated with an interest in the
Partnership.
(2) In the event that Dresdner reports its investment in
Partnerships on other than a consolidated basis, Dresdner
will include, when calculating its consolidated regulatory
capital ratios, an amount of assets in the denominator equal
Legal Developments
363
to all liabilities reported by the Partnership(s). The amount
of this adjustment will be risk-weighted at 100 percent for
purposes of calculating the risk-based capital ratios.
(3) Partnerships shall not offer interests more than four
times per year unless the Board determines that more
frequent issuances are consistent with the Glass-Steagall
Act.
CoBancorp is the 28th largest depository institution in
Ohio, controlling $571.7 million in deposits, representing
less than 1 percent of state deposits. On consummation of
the proposal, FirstMerit would become the seventh largest
depository institution in Ohio, controlling $4.8 billion in
deposits, representing approximately 3.3 percent of state
deposits.
Orders Issued Under Sections 3 and 4 of the Bank
Holding Company Act
Competitive Considerations
FirstMerit Corporation
Akron, Ohio
Order Approving the Merger of Bank Holding
Companies
FirstMerit Corporation, Akron, Ohio ("FirstMerit"), a
bank holding company within the meaning of the Bank
Holding Company Act ("BHC Act"), has requested the
Board's approval under section 3 of the BHC Act
(12 U.S.C. § 1842) to merge with CoBancorp, Inc., Elyria,
Ohio ("CoBancorp"), and thereby acquire CoBancorp's
subsidiary bank, PremierBank & Trust, Elyria, Ohio ("PremierBank"). FirstMerit also has requested the Board's
approval under section 4(c)(8) of the BHC Act (12 U.S.C.
§ 1843(c)(8)) and section 225.24 of the Board's Regulation
Y (12 C.F.R. 225.24) to acquire Jefferson Savings Bank,
West Jefferson, Ohio ("Savings Bank"), and thereby engage in savings association activities.1
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published (63
Federal Register 2980 (1998)). The time for riling comments has expired, and the Board has considered the proposal and all comments received in light of the factors set
forth in sections 3 and 4 of the BHC Act.
FirstMerit is the tenth largest depository institution in
Ohio, controlling $4.3 billion in deposits,2 representing
approximately 2.9 percent of total deposits in insured depository institutions in the state ("state deposits"). 3
1. FirstMerit proposes to merge PremierBank and Savings Bank
with and into its wholly owned subsidiary bank, FirstMerit Bank,
National Association, Akron, Ohio ("FirstMerit Bank"). The merger
is subject to approval by the Office of the Comptroller of the Currency
("OCC") under section 18(c) of the Federal Deposit Insurance Act
(12 U.S.C. § 1828(c)). FirstMerit also has requested approval of
an option to purchase up to 19.9 percent of the voting stock of
CoBancorp if certain events occur. The option would expire on
consummation of the proposal.
2. State deposit data are as of June 30, 1997, and market share data
are as of June 30, 1996.
3. In this context, depository institutions include commercial banks,
savings banks, and savings associations. Market share data before
consummation are based on calculations in which the deposits of thrift
institutions are included at 50 percent. The Board previously has
indicated that thrift institutions have become, or have the potential to
become, significant competitors of commercial banks. See WM Bancorp, 76 Federal Reserve Bulletin 788 (1990); National City Corporation, 70 Federal Reserve Bulletin 743 (1984). Because the deposits of
Savings Bank would be acquired by a commercial banking organization under the proposal, Savings Bank's deposits are included at
The BHC Act prohibits the Board from approving an
application under section 3 of the BHC Act if the proposal
would result in a monopoly, or if the proposal would
substantially lessen competition in any relevant banking
market and the Board has not found that the anticompetitive effects of the proposal are clearly outweighed in the
public interest by the probable effect of the proposal in
meeting the convenience and needs of the community to be
served.
FirstMerit and CoBancorp compete directly in the Ohio
banking markets of Cleveland and Sandusky.4 Consummation of the proposal would be consistent with the Department of Justice Merger Guidelines5 and Board precedent in
both banking markets.6 Based on all the facts of record, the
Board concludes that consummation of the proposal would
not have a significantly adverse effect on competition or on
the concentration of banking resources in the Cleveland
100 percent in the calculation of the pro forma market shares. See
Norwest Corporation, 78 Federal Reserve Bulletin 452 (1992); First
Banks, Inc., 76 Federal Reserve Bulletin 669 (1990).
4. The Cleveland, Ohio, banking market is denned as Cuyahoga,
Lake, Lorain, and Geauga Counties and the northern third of Summit
County, including the townships of Sagamore Hills, Northfield Center,
Twinsburg, Richfield, Boston, and Hudson Townships and the municipalities circumscribed by those townships; all of Medina County,
except the townships of Homer, Harrisville, Westfield, Guilford,
Wadsworth, and Sharon; the townships of Aurora and Streetsboro in
Portage County; and the city of Vermillion in Erie County, all in Ohio.
The Sandusky, Ohio, banking market is defined as all of Erie County,
except the city of Vermillion.
5. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 29, 1984). a market in which the
post-merger Herfindahl-Hirschman Index ("HHI") is between 1000
and 1800 is considered moderately concentrated, and a market in
which the post-merger HHI is above 1800 is considered highly concentrated. The Justice Department has informed the Board that a bank
merger or acquisition generally will not be challenged (in the absence
of other factors indicating anticompetitive effects) unless the postmerger HHI is at least 1800 and the merger or acquisition increases
the HHI by at least 200 points. The Justice Department has stated that
the higher than normal threshold for an increase in the HHI when
screening bank mergers and acquisitions for anticompetitive effects
implicitly recognizes the competitive effect of limited-purpose lenders
and other nondepository financial entities.
6. FirstMerit would become the fifth largest depository institution in
the Cleveland banking market, controlling deposits of approximately
$1.8 billion, representing approximately 6.0 percent of total deposits
in depository institutions in the market ("market deposits"). The HHI
for the market would increase by 14 points to 1363. In the Sandusky
market, FirstMerit would remain the fourth largest depository institution, controlling deposits of approximately $48.7 million, representing
approximately 7.7 percent of market deposits. The HHI for the market
would increase by 13 points to 2371.
364
Federal Reserve Bulletin • May 1998
and Sandusky banking markets or any other relevant banking market.
Financial, Managerial, and Other Supervisory Factors
In addition, the BHC Act requires the Board, in acting on
an application, to consider the financial and managerial
resources and future prospects of the companies and banks
involved in a proposal and certain other supervisory factors. The Board has carefully considered the financial and
managerial resources and future prospects of FirstMerit,
CoBancorp, and their respective subsidiary banks, in light
of all the facts of record, including supervisory reports of
examination assessing the financial and managerial resources of the organizations and financial information provided by FirstMerit. The Board notes that the bank holding
companies and their subsidiary banks are well capitalized
and are expected to remain so after consummation of the
proposal. Based on all the facts of record, the Board
concludes that the financial and managerial resources and
future prospects of FirstMerit, CoBancorp, and their subsidiary banks are consistent with approval, as are the other
supervisory factors the Board must consider under section 3 of the BHC Act.
Convenience and Needs Considerations
The Board also has carefully considered the effect of the
proposal on the convenience and needs of the communities
to be served in light of all the facts of record, including a
comment by the Legal Aid Society of Lorain County, Inc.,
on behalf of a client ("Commenter"), contending that
FirstMerit has made inadequate efforts to help meet the
housing-related credit needs of low- and moderate-income
("LMI") individuals in Lorain County, Ohio, and that
FirstMerit's proposed branch closings in Lorain County
would adversely affect LMI and minority neighborhoods.
As noted, PremierBank and Savings Bank would be
merged with and into FirstMerit Bank in connection with
the proposal. In this light, the Board has given substantial
consideration to the existing record of FirstMerit Bank, as
reflected in its CRA performance evaluations and the policies and programs of FirstMerit Bank that help meet the
credit needs of all its service communities, including LMI
neighborhoods.
CRA Performance Examinations. The Board has long
held that consideration of the convenience and needs factor
includes a review of the records of the relevant depository
institutions under the Community Reinvestment Act
(12 U.S.C. § 2901 et seq.) ("CRA").7 As provided in the
CRA, the Board evaluates the convenience and needs
factor in light of examinations of the CRA performance
records of the relevant institutions by their primary federal
supervisors. An institution's most recent CRA perfor7. The Board also has traditionally considered records of performance under the CRA in proposals involving the acquisition of
savings associations. See Bane One Corporation, 83 Federal Reserve
Bulletin 602 (1997).
mance evaluation is a particularly important consideration
in the applications process because it represents a detailed,
on-site evaluation of the institution's overall record of
performance under the CRA by its primary federal supervisor.8
The predecessor banks to FirstMerit Bank received "outstanding" CRA performance ratings from the OCC at their
most recent examinations.9 FirstMerit's remaining banks
received "satisfactory" ratings from the OCC at their most
recent examinations for CRA performance. In addition,
PremierBank and Savings Bank received "outstanding"
and "satisfactory" ratings, respectively, from their primary
federal supervisors at their most recent examinations for
CRA performance. Examiners found no evidence of prohibited discrimination or other illegal credit practices
at the subsidiary depository institutions of FirstMerit or
CoBancorp in these examinations.
Lending Record of FirstMerit Bank. FirstMerit Bank
offers several programs to assist in meeting the housingrelated credit needs of LMI and minority borrowers, including two affordable home mortgage products (the BEST
I and BEST III programs) designed specifically for LMI
borrowers and residences in LMI census tracts. Both programs feature flexible underwriting guidelines, closing cost
assistance, and down payments as low as 5 percent.10
FirstMerit also has invested $1 million in the Ohio Equity
Fund for Housing, which financially supports the construction, rehabilitation and preservation of affordable housing
throughout Ohio, including a family housing project in
Lorain County.11 In 1997, the bank committed $221,000 in
financing for a group home for low-income individuals. In
addition, FirstMerit Bank intends to participate with the
City of Lorain in programs designed to provide home
purchase and home improvement loans to LMI individuals.
FirstMerit Bank also engages in small business lending.
In 1996, the bank originated 291 small business loans
in Lorain County, totalling $28.5 million. Approximately
22 percent of the total dollar amount of these small business loans were made to businesses in LMI census tracts.
8. The Statement of the Federal Financial Supervisory Agencies
Regarding the Community Reinvestment Act ("Agency CRA Statement") provides that a CRA examination is an important and often
controlling factor in the consideration of an institution's CRA record
and that reports of these examinations will be given great weight in
the applications process. See 54 Federal Register 13,742 and 13,745
(1989).
9. First National Bank of Ohio, Akron, Ohio, and EST National
Bank, Elyria, Ohio, each received an "outstanding" rating from the
OCC, as of April 1996. EST National Bank primarily served the
Lorain County area.
10. Data in 1996 show that FirstMerit Bank's predecessor, EST
National Bank, made approximately 21 percent of the loans it reported
under the Home Mortgage Disclosure Act (12 U.S.C. 2801 et seq.)
("HMDA") in Lorain County to low-income individuals and approximately 25 percent to moderate-income individuals. Preliminary data
for 1997 cited by FirstMerit show that approximately 38 percent of the
bank's HMDA loans in Lorain County were to low-income individuals and approximately 19 percent were to moderate-income individuals.
11. FirstMerit Bank also has provided $2.6 million in permanent
financing to this project.
Legal Developments
FirstMerit Bank also participates in federal and state
government-sponsored small business loan programs, including programs offered by the Small Business Administration, and the Ohio Link Deposit and Ohio Mini-Loan
programs. The bank currently has outstanding 48 loans,
totalling $4.4 million, under these government-sponsored
loan programs in Lorain County. FirstMerit Bank also has
provided financing to the Women's Development Center
and the Elyria Downtown Development Fund.
FirstMerit has formed a Community Development Corporation ("CDC") that has made approximately $4 million
in loans and investments in LMI communities over the last
two years. The CDC also has participated in numerous
community outreach programs and has provided interestfree financing to the Community Housing Corporation in
Elyria, Ohio.
Branch Closings. FirstMerit has indicated that 20
branches would be closed or consolidated as a result of the
proposal. Two of the branches to be closed or consolidated
are in LMI census tracts and are operated by PremierBank.12 One of the LMI branches is across the street from a
FirstMerit branch that would continue to operate.
The other LMI branch would be merged with a FirstMerit branch that is within approximately 1.5 miles of the
PremierBank branch to be closed. FirstMerit contends that
this branch has significantly fewer transactions and a significantly smaller deposit base than the average for transactions and deposits at all other FirstMerit branches in Lorain
County. FirstMerit notes, moreover, that the customers of
the PremierBank branch to be closed would be able to
obtain information on their accounts and apply for loans by
telephone. The Board also notes that the branch closing
policies of FirstMerit and PremierBank require consideration of community concerns before deciding to close a
branch.
In addition to these factors, the Board has considered
that federal banking law provides a specific mechanism for
addressing branch closings. Federal law requires an insured depository institution to provide notice to the public
and to the appropriate regulatory agency at least 30 days
prior to closing a branch. The law does not authorize
federal regulators to prevent the closing of any branch.13
Conclusion on Convenience and Needs Considerations.
The Board has carefully considered all the facts of record,
including the public comment received, responses to the
comment, and the CRA performance records of the subsidiary banks of FirstMerit and CoBancorp, including relevant
12. FirstMerit has indicated that the LMI branch discussed by
Commenter would remain open after consummation of the transaction.
13. Section 42 of the Federal Deposit Insurance Act (12 U.S.C.
§ 1831r-l, as implemented by the Joint Policy Statement Regarding
Branch Closings (see 58 Federal Register 49,083 (1993)), requires
that a bank provide the public with at least 30 days notice and the
primary federal supervisor with at least 90 days notice before the date
of the proposed branch closing. The bank also is required to provide
reasons and other supporting data for the closure, consistent with the
institution's written policy for branch closings.
365
reports of examination. Based on a review of the entire
record, and for the reasons discussed in this order, the
Board has concluded that convenience and needs considerations, including the CRA performance records of the
subsidiary banks of FirstMerit and CoBancorp, are consistent with approval.14
Nonbanking Activities
FirstMerit also has filed notice under section 4(c)(8) of the
BHC Act to acquire Savings Bank and thereby engage in
savings association activities. The Board previously has
determined by regulation that the operation of a savings
association by a bank holding company is closely related to
banking for purposes of section 4(c)(8) of the BHC Act,
and FirstMerit has committed to conduct this activity in
accordance with Regulation Y and relevant Board interpretations and orders.15 In making this determination, the
Board requires that savings associations acquired by bank
holding companies conform their direct and indirect activities to those permissible for bank holding companies under
section 4 of the BHC Act.
In order to approve the proposal, the Board also must
determine that the performance of the proposed activity is
a proper incident to banking, that is, that the proposed
transaction, "can reasonably be expected to produce benefits to the public . . . that outweigh possible adverse effects,
such as undue concentration of resources, decreased or
unfair competition, conflicts of interests, or unsound banking practices." 16 As part of the Board's evaluation of these
factors, the Board considers the financial and managerial
resources of the notificant and its subsidiaries, including
any company to be acquired, and the effect the transaction
would have on such resources.17 Based on all the facts of
record, the Board has concluded that financial and managerial considerations are consistent with approval of the
notice under section 4 of the BHC Act for the reasons
discussed above.
The Board also has carefully considered the competitive
effects of the proposed acquisition of Savings Bank and, as
discussed above, has concluded that consummation of the
proposal would not have a significantly adverse effect on
competition or on the concentration of banking resources
14. The Board has carefully reviewed Commenter's contentions that
high fees discourage LMI individuals from using FirstMerit's banking
products and services. As discussed above, FirstMerit provides a full
range of credit products and banking services that assist in meeting the
credit and banking needs of LMI individuals and these products
include a "lifeline" checking product with no monthly fee for LMI
individuals. In addition, there is no evidence in the record that the fees
charged by FirstMerit are based on any factor that would be prohibited
under law. Although the Board has recognized that banks help serve
the banking needs of their communities by making basic services
available at nominal or no charge, the CRA does not impose any
limitation on the fees or surcharges for services.
15. See 12 C.F.R. 225.28(b)(4).
16. See 12 U.S.C. § 1843(c)(8).
17. See 12 C.F.R. 225.26.
366
Federal Reserve Bulletin • May 1998
in any relevant banking market. The Board expects, moreover, that the acquisition of CoBancorp by FirstMerit
would provide added convenience to CoBancorp's customers and to FirstMerit's customers. Consummation of the
proposal also is likely to result in increased operating
efficiencies for the combined organization. Additionally,
there are public benefits to be derived from permitting
capital markets to operate so that bank holding companies
may make potentially profitable investment in nonbanking
companies when, as in this case, those investments are
consistent with the relevant considerations under the BHC
Act, and from permitting banking organizations to allocate
their resources in the manner they believe is most efficient.
Based on all the facts of record, the Board has determined
that consummation of the proposal can reasonably be expected to produce public benefits that would outweigh any
likely adverse eifects under the proper incident to banking
standard of section 4(c)(8) of the BHC Act.
Conclusion
Based on the foregoing and all the other facts of record, the
Board has determined that this transaction should be, and
hereby is, approved subject to all the terms and conditions
in this order. The Board's approval is specifically conditioned on compliance by FirstMerit with all the commitments made in connection with the proposal.
The Board's determination on the nonbanking activities
also is subject to all the terms and conditions set forth in
Regulation Y, including those in sections 225.7 and
225.25(c) of Regulation Y (12 C.F.R. 225.7 and 225.25(c)),
and to the Board's authority to require such modification or
termination of the activities of a bank holding company or
any of its subsidiaries as the Board finds necessary to
ensure compliance with, and to prevent evasion of, the
provisions of the BHC Act and the Board's regulations and
orders issued thereunder. The commitments and conditions
relied on by the Board in reaching this decision are deemed
to be conditions imposed in writing by the Board in connection with its findings and decision and, as such, may be
enforced in proceedings under applicable law.
The acquisition of CoBancorp's PremierBank shall not
be consummated before the fifteenth calendar day following the effective date of this order, and the proposal shall
not be consummated later than three months after the
effective date of this order, unless such period is extended
for good cause by the Board or by the Federal Reserve
Bank of Cleveland, acting pursuant to delegated authority.
By order of the Board of Governors, effective March 11,
1998.
Voting for this action: Chairman Greenspan and Governors
Phillips, Meyer, Ferguson, and Gramlich. Absent and not voting:
Vice Chair Rivlin and Governor Kelley.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
WesBanco, Inc.
Wheeling, West Virginia
Order Approving Acquisition of Bank Holding
Companies, Merger of Banks and Establishment of
Branches
WesBanco, Inc., Wheeling, West Virginia ("WesBanco"),
a bank holding company within the meaning of the Bank
Holding Company Act ("BHC Act"), has requested the
Board's approval under sections 3 and 4 of the BHC Act
(12 U.S.C. §§ 1842 and 1843(c)(8)) to acquire Commercial
BancShares, Inc., Parkersburg, West Virginia ("Commercial"), and Gateway Bancshares, Inc., McMechen, West
Virginia ("Gateway"), and thereby acquire their banking
and nonbanking subsidiaries listed in the Appendix.1 WesBanco's lead bank, WesBanco Bank Wheeling, Wheeling,
West Virginia ("WesBanco Wheeling"), also has requested
the Board's approval under section 18(c) of the Federal
Deposit Insurance Act (the "Bank Merger Act") (12 U.S.C.
§ 1828(c)) to merge with Commercial's subsidiary bank,
The Bank of Paden City, Paden City, West Virginia, and
Gateway's subsidiary bank, Bank of McMechen,
McMechen, West Virginia, and under section 9 of the
Federal Reserve Act ("FRA") (12 U.S.C. § 321) to establish branches at the current offices of these banks listed in
the Appendix.
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published (63
Federal Register 2393 (1998)) and has been given in
accordance with the Bank Merger Act and the Board's
Rules of Procedure (12 C.F.R. 262.3(b)). As required by
the Bank Merger Act, reports on the competitive effects of
the bank mergers were requested from the United States
Attorney General, the Office of the Comptroller of the
Currency ("OCC"), and the Federal Deposit Insurance
Corporation ("FDIC"). The time for filing comments has
expired, and the Board has considered the proposal and all
comments received in light of the factors set forth in the
BHC Act, the Bank Merger Act, and the FRA.
WesBanco operates six banks in West Virginia and one
bank in Ohio. WesBanco is the fifth largest commercial
banking organization in West Virginia, controlling approximately $1.3 billion in deposits, representing approximately 6.7 percent of total deposits in depository institutions in the state ("state deposits"). 2 Commercial controls
seven banks in West Virginia and one bank in Ohio. 3
Commercial is the tenth largest depository institution in
1. WesBanco would merge Commercial and Gateway with and into
its wholly owned subsidiary, CBI Holding Company ("CBI"), that
would be formed solely for the purpose of effecting the acquisitions.
In connection with this proposal CBI has applied to become a bank
holding company.
2. State deposit data are as of June 30, 1997. In this context,
depository institutions include commercial banks, savings banks, and
savings associations.
3. In December 1997, the Federal Reserve Bank of Richmond,
acting under delegated authority, approved Commercial's application
to acquire Gateway. Although Commercial has not consummated the
Legal Developments 367
West Virginia, controlling approximately $348.7 million in
deposits, representing approximately 1.8 percent of state
deposits. On consummation of the proposal, and taking
into account all proposed divestitures, WesBanco would
remain the fifth largest commercial banking organization in
West Virginia, controlling deposits of $1.6 billion, representing approximately 8.3 percent of state deposits.
WesBanco is the 107th largest commercial banking organization in Ohio, controlling approximately $129.9 million
in deposits, representing less than 1 percent of total deposits in commercial banking organizations in the state. Commercial is the 88th largest commercial banking organization in Ohio, controlling approximately $166.7 million in
deposits, representing less than 1 percent of state deposits.
On consummation of the proposal, WesBanco would become the 54th largest depository institution in Ohio, controlling $296.6 million in deposits, representing less than
1 percent of deposits in Ohio.
Interstate Analysis
Section 3(d) of the BHC Act, as amended by Section 101
of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 ("Riegle-Neal Act"), 4 allows the Board
to approve an application by a bank holding company to
acquire control of a bank located in a state other than the
home state of such bank holding company, if certain conditions are met. For purposes of the BHC Act, the home state
of WesBanco is West Virginia, and it proposes to acquire a
subsidiary bank of Commercial in Ohio.5 All of the conditions for an interstate acquisition enumerated in section 3(d) are met in this case. 6 In view of all the facts of
record, the Board is permitted to approve the proposal
under section 3(d) of the BHC Act.
Competitive
Considerations
The BHC Act and the Bank Merger Act prohibit the Board
from approving a proposal if it would result in a monopoly
or if the effect of the proposal may be substantially to
lessen competition in any relevant market unless the Board
acquisition, the deposits of Gateway have been attributed to Commercial in the deposit data.
4. Pub. L. No. 103-328, 108 Stat. 2338 (1994).
5. A bank holding company's home state is that state in which the
operations of the bank holding company's banking subsidiaries were
principally conducted on July 1, 1966, or the date on which the
company became a bank holding company, whichever is later.
12U.S.C. §1841(o)(4)(C).
6. See 12 U.S.C. §§ 1842(d)( 1 )(A) and (B) and 1842(d)(2)(A) and
(B). WesBanco is adequately capitalized and adequately managed, as
defined by the Riegle-Neal Act. Ohio law imposes no minimum
period of existence and operation for an acquired bank. See generally
Ohio Rev. Ann. § 1115.05 (Anderson 1996). On consummation of the
proposal, WesBanco would control less than 10 percent of the total
amount of deposits of insured depository institutions in the United
States and less than 30 percent of the total amount of deposits of
insured depository institutions in West Virginia and Ohio. All other
requirements of section 3(d) of the BHC Act also would be met on
consummation of the proposal.
finds that the anticompetitive effects of the proposed transaction are clearly outweighed in the public interest by the
probable effect of the transaction in meeting the convenience and needs of the community to be served.7
WesBanco and Commercial compete directly in three
West Virginia banking markets: Parkersburg/Marietta,
Wheeling, and Tyler/Wetzel.8 Consummation of the proposal would be consistent with the Department of Justice
Merger Guidelines ("DOJ Guidelines") 9 and prior Board
precedent in the Wheeling and Marietta/Parkersburg banking markets. 10
In order to mitigate the potential anticompetitive effects
in the Tyler/Wetzel banking market, WesBanco has committed to divest one of Commercial's subsidiary banks in
the market, Union Bank of Tyler County, which controls
approximately $33.3 million in deposits, to an out-ofmarket purchaser.11 After accounting for the proposed divestiture, WesBanco would become the largest depository
7. 12 U.S.C. §§ 1842(c)(l)(B) and 1828(c)(5)(B). Market share data
used to analyze the competitive effects of the proposal are as of
June 30, 1996. These data are based on calculations in which the
deposits of thrift institutions are included at 50 percent. The Board
previously has indicated that thrift institutions have become, or have
the potential to become, significant competitors of commercial banks.
See Midwest Financial Group, 75 Federal Reserve Bulletin 386
(1989); National City Corporation, 70 Federal Reserve Bulletin 743
(1984). Thus, the Board has regularly included thrift deposits in the
calculation of market share on a 50-percent weighted basis. See, e.g.,
First Hawaiian, Inc., 77 Federal Reserve Bulletin 52 (1991).
8. The Parkersburg/Marietta banking market is approximated by
Wood, Pleasants, Ritchie, and Win Counties in West Virginia; and
Washington County, Ohio. The Wheeling banking market is approximated by Marshall and Ohio Counties in West Virginia; and Colerain,
Pease, Pultney, Mead, York townships and the eastern two-thirds of
Richland township in Belmont County, in Ohio. The Tyler/Wetzel
banking market is defined as Tyler and Wetzel Counties in West
Virginia.
9. Under the revised DOJ Guidelines, 49 Federal Register 26,823
(June 29, 1984), a market in which the post-merger HerfindahlHirschman Index ("HHI") is above 1800 is considered highly concentrated. The Department of Justice has informed the Board that a bank
merger or acquisition generally will not be challenged (in the absence
of other factors indicating anticompetitive effects) unless the postmerger HHI is at least 1800 and the merger increases the HHI by more
than 200 points. The Department of Justice has stated that the higher
than normal HHI thresholds for screening bank mergers for anticompetitive effects implicitly recognize the competitive effect of limitedpurpose lenders and other non-depository financial entities.
10. On consummation of the proposal, WesBanco would become
the largest depository institution in the Parkersburg/Marietta banking
market and control $343.5 million in deposits, representing
18.7 percent of total deposits in depository institutions in the market
("market deposits"). The HHI would increase 145 points to 1122.
WesBanco would remain the largest depository institution in the
Wheeling banking market and control $362.4 million in deposits,
representing 21.7 percent of market deposits. The HHI would increase
69 points to 1096.
11. WesBanco has committed to execute a sales agreement with an
out-of-market commercial banking organization prior to consummation of the proposal and to complete the divestiture within 180 days
after consummation of the proposal. WesBanco also has committed
that, in the event it is unsuccessful in completing the divestiture within
180 days of consummation, WesBanco will transfer any unsold
office(s) to an independent trustee that is acceptable to the Board and
that will be instructed to sell the office(s) promptly. See BankAmerica
Corporation, 78 Federal Reserve Bulletin 338 (1992).
368
Federal Reserve Bulletin • May 1998
institution in the Tyler/Wetzel banking market, controlling
deposits of approximately $82.6 million, representing
36 percent of market deposits. Concentration in the market,
as measured by the HHI, would increase by 225 points to
2077.
Several mitigating considerations offset the proposal's
effect on competition in the Tyler/Wetzel banking market.
The proposal would not reduce the number of competitors
in the market, and nine competitors would remain in the
market after consummation. Two of the nine institutions
are large regional banking organizations, and three of the
nine institutions, including WesBanco, each would have a
market share of at least 10 percent. Although measures of
attractiveness of the Tyler/Wetzel market are mixed, the
Board notes that there recently has been de novo entry by a
commercial bank. The Board believes that these factors
mitigate the potentially adverse effects of the proposal.
The Justice Department reviewed the proposal and advised the Board that, in light of the proposed divestiture,
consummation of the proposal would not likely have any
significantly adverse competitive effects in the Tyler/
Wetzel banking market or any other relevant banking market. The OCC and FDIC also have not objected to the
proposal.
Based on all the facts of record, and for the reasons
discussed in this order, the Board concludes that consummation of the proposal is not likely to result in any significantly adverse effects on competition or on the concentration of banking resources in the Tyler/Wetzel banking
market or any other relevant banking market.
Other Considerations
The BHC Act and the Bank Merger Act require the Board,
in acting on an application, to consider the financial and
managerial resources and future prospects of the companies and banks involved, the convenience and needs of the
communities to be served, and certain supervisory factors.
The Board has reviewed these factors in light of the record,
including supervisory reports of examination assessing the
financial and managerial resources of the organizations and
financial information provided by WesBanco. Based on all
the facts of record, the Board concludes that the financial
and managerial resources and the future prospects of WesBanco, Commercial and their respective subsidiary banks
are consistent with approval, as are the other supervisory
factors the Board must consider under section 3 of the
BHC Act. In addition, considerations related to the convenience and needs of the communities to be served, including the records of performance of the institutions under the
Community Reinvestment Act, are consistent with approval of the proposal.
WesBanco also has filed notice under section 4(c)(8) of
the BHC Act to acquire the nonbanking subsidiaries of
Commercial listed in the Appendix. The Board previously
has determined by regulation that each of the activities
described in the Appendix is closely related to banking
within the meaning of section 4(c)(8) of the BHC Act, and
WesBanco proposes to conduct these activities in accor
dance with Regulation Y.12 In order to approve the proposal, the Board also must determine that the performance
of the proposed activities is a proper incident to banking,
that is, that the proposed transaction "can reasonably be
expected to produce benefits to the public . . . that outweigh possible adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts
of interests, or unsound banking practices." 13 As part of its
evaluation of these factors, the Board considers the financial and managerial resources of the notificant and its
subsidiaries, including any company to be acquired, and
the effect the transaction would have on such resources.14
As noted above, based on all the facts of record, the Board
has concluded that financial and managerial considerations
are consistent with approval of the notice.
Each of the markets for the nonbanking services affected
by the proposal is unconcentrated, and there are numerous
providers of each service. As a result, consummation of the
proposal is expected to have a de minimis effect on competition for the services.
The Board expects, moreover, that the acquisition of
Commercial by WesBanco would provide added convenience to Commercial's customers, and to the public by
increasing operating efficiencies, improving convenience,
and expanding the services available to customers of Commercial. Additionally, there are public benefits to be derived from permitting capital markets to operate so that
bank holding companies may make potentially profitable
investments in nonbanking companies when those investments are consistent, as in this case, with the relevant
considerations under the BHC Act, and from permitting
banking organizations to allocate their resources in the
manner they believe is most efficient. Accordingly, based
on all the facts of record, the Board has determined that the
proposal can reasonably be expected to produce public
benefits that outweigh any adverse effects under the proper
incident to banking standard of section 4(c)(8) of the BHC
Act.
The Board also has considered the factors it is required
to consider when reviewing applications for establishing
branches under section 9 of the FRA and concludes that
these factors are consistent with approval of WesBanco
Wheeling's application to establish branches at the locations listed in the Appendix.
Conclusion
Based on the foregoing, and in light of all the facts of
record, the Board has determined that the applications and
notice should be, and hereby are, approved. The Board's
approval is specifically conditioned on compliance by WesBanco with all the commitments made in connection with
these applications. For the purpose of this action, the
commitments and conditions relied on by the Board in
12. See 12 C.F.R. 225.28(b)(l), (6), (7) and (11).
13. 12U.S.C. § 1843(c)(8).
14. See 12 C.F.R. 225.26.
Legal Developments
reaching its decisions are deemed to be conditions imposed
in writing by the Board in connection with its findings and
decision and, as such, may be enforced in proceedings
under applicable law.
The acquisition of the banks shall not be consummated
before the fifteenth calendar day following the effective
date of this order, or later than three months after the
effective date of this order, unless such period is extended
for good cause by the Board or by the Federal Reserve
Bank of Cleveland, acting pursuant to delegated authority.
By order of the Board of Governors, effective March 2,
1998.
Voting for this action: Chairman Greenspan, Vice Chair Rivlin, and
Governors Kelley, Phillips, Meyer, Ferguson, and Gramlich.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
Appendix
A. Subsidiary Banks of Commercial
369
— Ohio
The Dime Bank, Marietta.
B. Subsidiary Bank of Gateway
Bank of McMechen, McMechen, West Virginia.
C. Nonbanking Subsidiaries of Commercial
Commbanc Investment, Inc., Marietta, Ohio, engaging
in financial and investment advisory activities pursuant to
section 225.28(b)(6) of Regulation Y (12 C.F.R.
225.28(b)(6)) and securities brokerage activities pursuant
to section 225.28(b)(7)(i) of Regulation Y (12 C.F.R.
225.28(b)(7)(i)); and
Hometown Financial Co., Inc., Parkersburg, West Virginia, engaging in consumer lending pursuant to section
225.28(b)(l) of Regulation Y (12 C.F.R. 225.28(b)(l)) and
the sale of credit-related insurance pursuant to section
225.28(b)(ll)(i)
of
Regulation
Y
(12
C.F.R.
— West Virginia
Commercial Banking and Trust Company, Parkersburg;
Jackson County Bank, Ravenswood;
Farmers & Mechanics Bank of Ritchie County, Harrisville;
Union Bank of Tyler County, Middlebourne;
Community Bank, Pennsboro; and
The Bank of Paden City, Paden City.
D. New West Virginia Branches of WesBanco Wheeling
4th and Main Streets, Paden City;
285 N. State Route 2, New Martinsville;
700 Marshall Street, McMechen;
613 Marshall Street, McMechen; and
43 Marshall Street, Benwood.
APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT
By the Secretary of the Board
Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to
the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
Section 3
Applicant(s)
Bank(s)
Effective Date
Deposit Guaranty Corp.,
Jackson, Mississippi
Victory Bancshares, Inc.,
Cordova, Tennessee
Victory Bank and Trust Company,
Cordova, Tennessee
Victory Bancshares, Inc.,
Cordova, Tennessee
Victory Bank and Trust Company,
Cordova, Tennessee
March 6, 1998
First American Corporation,
Nashville, Tennessee
March 23, 1998
Section 4
Applicant(s)
Bank(s)
Effective Date
Norwest Corporation,
Minneapolis, Minnesota
Automotive Financial Services, Inc..
White Bear Lake, Minnesota
March 31, 1998
370
Federal Reserve Bulletin • May 1998
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to
the Reserve Banks.
Section 3
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
BancFirst Corporation,
Oklahoma City, Oklahoma
Cache Bank Financial Corporation,
Greeley, Colorado
Chambers Bancshares, Inc.,
Danville, Arkansas
Lawton Security Bancshares, Inc.,
Lawton, Oklahoma
Cache Bank,
Greeley, Colorado
Community Investment, Inc.,
Elkins, Arkansas
Bank of Elkins,
Elkins, Arkansas
Citizens Bank & Trust Company of
Chicago,
Chicago, Illinois
The Peoples State Bank,
East Berlin, Pennsylvania
Community Bancorp, Inc.,
Thornton, Colorado
Community First National Bank,
Thornton, Colorado
FNB, Inc.,
Greeley, Colorado
First National Bank of Greeley,
Greeley, Colorado
Poudre Valley Bank,
Fort Collins, Colorado
Pioneer Bank of Longmont,
Longmont, Colorado
The Delaware Community Group, Inc.,
Wilmington, Delaware
United Community Bank, N.A.,
Highland Village, Texas
First State Holding Company,
Elkhart, Kansas
The First State Bank of Elkhart,
Elkhart, Kansas
Countryside Bank,
Republic, Missouri
Olivia Bancorporation, Inc.,
Olivia, Minnesota
American State Bank of Olivia,
Olivia, Minnesota
United Community Bank, N.A.,
Highland Village, Texas
Kansas City
March 25, 1998
Kansas City
February 23, 1998
St. Louis
March 18, 1998
Chicago
February 27, 1998
Philadelphia
February 23, 1998
Minneapolis
March 18, 1998
Minneapolis
March 17, 1998
Minneapolis
March 16, 1998
Dallas
February 26, 1998
Kansas City
February 24, 1998
St. Louis
March 2, 1998
Minneapolis
March 2, 1998
Dallas
February 26, 1998
Dallas
March 24, 1998
Cleveland
February 26, 1998
Citizens Financial Corporation,
Chicago, Illinois
Community Banks, Inc.,
Millersburg, Pennsylvania
Community First Bankshares, Inc.,
Fargo, North Dakota
Community First Bankshares, Inc..
Fargo, North Dakota
Community First Bankshares, Inc..
Fargo, North Dakota
The Community Group, Inc.,
Dallas, Texas
CountryBanc Holding Company,
Edmond, Oklahoma
Countryside Bancshares, Inc.,
Republic, Missouri
Dakota Bancshares, Inc.,
Mendota Heights, Minnesota
The Delaware Community Group,
Inc.,
Wilmington, Delaware
First Azle Bancshares, Inc.,
Employees Stock Ownership
Plan,
Azle, Texas
First Capital Bancshares, Inc.,
Chillicothe, Ohio
First Azle Bancshares, Inc.,
Azle, Texas
First Bank,
Azle, Texas
Citizens National Bank,
Chillicothe, Ohio
Legal Developments
371
Section 3—Continued
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
The First Jermyn Corp.,
Jermyn, Pennsylvania
First Place Financial Corporation,
Farmington, New Mexico
First Savings Bank of Washington
Bancorp, Inc.,
Walla Walla, Washington
First United Bancshares, Inc.,
El Dorado, Arkansas
Upper Valley Bancorp,
Olyphant, Pennsylvania
Capital Bank,
Albuquerque, New Mexico
Towne Bancorp,
Woodinville, Washington
Philadelphia
March 10, 1998
Kansas City
March 4, 1998
San Francisco
February 25, 1998
St. Louis
February 27, 1998
Chicago
February 19, 1998
Chicago
March 5, 1998
Atlanta
February 20, 1998
Minneapolis
February 19, 1998
Minneapolis
March 19, 1998
San Francisco
March 5, 1998
San Francisco
March 5, 1998
Atlanta
February 20, 1998
Kansas City
March 2, 1998
F&M Bancorporation, Inc.,
Kaukauna, Wisconsin
F & M Bancorporation, Inc.,
Kaukauna, Wisconsin
F & M Merger Corporation,
Kaukauna, Wisconsin
FMCB Holdings, Inc.,
Senoia, Georgia
Forstrom Bancorporation, Inc.,
Clara City, Minnesota
Glacier Bancorp, Inc.,
Kalispell, Montana
G V Bancorp Employee Stock
Ownership Plan,
Gunnison, Utah
G V Bancorp, Inc.,
Gunnison, Utah
Hibernia Corporation,
New Orleans, Louisiana
Hometown Bancshares, Inc.,
Carthage, Missouri
Republic Bancshares, Inc.,
Rayville, Louisiana
First Republic Bank,
Rayville, Louisiana
BancSecurity Corporation,
Marshalltown, Iowa
Security Bank,
Marshalltown, Iowa
Security Bank Jasper-Poweshiek,
Kellogg, Iowa
Story County Bank & Trust,
Story City, Iowa
Financial Management Services of
Jefferson, Inc.,
Jefferson, Wisconsin
Farmers & Merchants Bank of
Jefferson,
Jefferson, Wisconsin
Farmers and Merchants Community
Bank,
Senoia, Georgia
First Valley Bankcorp,
Seeley Lake, Montana
First Valley Bank,
Seeley Lake, Montana
HUB Financial Corporation,
Helena, Montana
Valley Bank of Helena,
Helena, Montana
G V Bancorp, Inc.,
Gunnison, Utah
Gunnison Valley Bank,
Gunnison, Utah
Firstshares of Texas, Inc.,
Marshall, Texas
Firstshares Intermediate Holding
Company, Inc.,
Marshall, Texas
First National Bank,
Marshall, Texas
Hometown Bank, N.A.,
Carthage, Missouri
372
Federal Reserve Bulletin D May 1998
Section 3—Continued
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
International Brotherhood of
Boilermakers, Iron Ship Builders
Blacksmiths, Forgers and Helpers,
Kansas City, Kansas
J, J & B Capital, L.P.,
Los Angeles, California
Busby Holdings, Inc.,
Los Angeles, California
James River Bankshares, Inc.,
Suffolk, Virginia
Krum Holdings, L.L.C.,
Krum, Texas
Porter Holdings, Ltd.,
Krum, Texas
Little Sioux Bancshares, Inc.,
Sioux Rapids, Iowa
MainBancorp, Inc.,
Austin, Texas
Maincorp Intermediate Holding
Company, Inc.,
Wilmington, Delaware
Marshall Community Bancshares,
Inc.,
Marshall, Missouri
MBT Bancshares, Inc.,
Kansas City, Missouri
National City Bancshares, Inc.,
Evansville, Indiana
Brotherhood Bancshares, Inc.,
Kansas City, Kansas
Brotherhood Bank & Trust Company,
Kansas City, Kansas
Founders National Bank of Los
Angeles,
Los Angeles, California
Kansas City
March 19, 1998
San Francisco
March 12, 1998
First Colonial Bank,
Hopewell, Virginia
Farmers and Merchants State Bank,
Krum, Texas
Richmond
March 10, 1998
Dallas
March 19, 1998
First State Bank,
Sioux Rapids, Iowa
First National Bancorporation,
Ennis, Texas
First National Bank of Ennis,
Ennis, Texas
Chicago
March 18, 1998
Dallas
February 20, 1998
Community Bank of Marshall,
Marshall, Missouri
Kansas City
February 26, 1998
Missouri Bank and Trust Company,
Kansas City, Missouri
Illinois One Bancorp, Inc.,
Shawneetown, Illinois
Illinois One Bank,
National Association,
Shawneetown, Illinois
Vernois Bancshares, Inc.,
Mount Vernon, Illinois
Bank of Illinois,
Mount Vernon, Illinois
Gateway State Bank,
Clinton, Iowa
Merchants & Planters Bancshares, Inc.,
Montevallo, Alabama
Merchants & Planters Bank,
Montevallo, Alabama
Peoples State Bank,
Lake City, Florida
The First National Bank of Shamrock,
Shamrock, Texas
Kansas City
February 26, 1998
St. Louis
March 12, 1998
St. Louis
February 17, 1998
Chicago
March 4, 1998
Atlanta
February 19, 1998
Atlanta
March 5, 1998
Dallas
March 11, 1998
Atlanta
March 17, 1998
Dallas
March 4, 1998
National City Bancshares, Inc.,
Evansville, Indiana
Ohnward Bancshares, Inc.,
Maquoketa, Iowa
The Peoples BancTrust Company,
Inc.,
Selma, Alabama
PSB BancGroup, Inc.,
Lake City, Florida
Shamrock Bancshares, Inc.,
Shamrock, Texas
Shamrock Delaware Financial, Inc.,
Dover, Delaware
Southern Bancshares, Inc.,
Claxton, Georgia
TransPecos Financial Corp.,
Iraan, Texas
The Claxton Bank,
Claxton, Georgia
Iraan State Bank,
Iraan, Texas
Legal Developments
373
Section 3—Continued
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
Union Planters Corporation,
Memphis, Tennessee
First National Bancshares of Wetumpka,
Inc.,
Wetumpka, Alabama
First National Bank of Wetumpka,
Wetumpka, Alabama
Merchants Bancshares, Inc.,
Houston, Texas
Gulf Southwest Nevada Bancorp, Inc.,
Houston, Texas
Merchants Bank,
Houston, Texas
St. Johns Bancshares, Inc.,
St. John, Missouri
St. Johns Bank & Trust Company,
St. John, Missouri
FP Bancorp,
Escondido, California
First Pacific National Bank,
Escondido, California
St. Louis
March 11, 1998
St. Louis
March 18, 1998
St. Louis
February 26, 1998
San Francisco
March 12, 1998
Applicant(s)
Nonbanking Activity/Company
Reserve Bank
Effective Date
1st Choice Financial Corporation,
Greeley, Colorado
City Holding Company,
Charleston, West Virginia
Community Trust Financial Services
Corporation,
Hiram, Georgia
Concord EFS, Inc.,
Memphis, Tennessee
Cornhusker Growth Corporation,
Lincoln, Nebraska
Choice Investment Corporation,
Greeley, Colorado
Del Amo Savings Bank, F.S.B.,
Torrance, California
Piedmont Loan Company,
Gainesville, Georgia
Kansas City
March 25, 1998
Richmond
March 17, 1998
Atlanta
March 16, 1998
Digital Merchant Systems, Inc., et. al.,
Northfield, Illinois
Johnston Growth Corporation,
Johnston, Iowa
Johnston Charter Bank,
Johnston, Iowa
To engage in the activities of extending
credit and servicing loans
St. Louis
March 2, 1998
Kansas City
February 20, 1998
St. Louis
February 24, 1998
Mentor Investment Group, LLC,
Richmond, Virginia
EFT Network Services, L.L.C.,
Little Rock, Arkansas
1st Bergen Bancorp,
Wood-Ridge, New Jersey
Hege Company, Inc.,
Spokane, Washington
Richmond
March 13, 1998
St. Louis
February 17, 1998
New York
February 19, 1998
San Francisco
February 27, 1998
St. Louis
March 2, 1998
Union Planters Corporation,
Memphis, Tennessee
Union Planters Holding Corporation,
Memphis, Tennessee
Unity Bancshares, L.L.C.,
St. John, Missouri
Zions Bancorporation,
Salt Lake City, Utah
Section 4
DeWitt First Bankshares
Corporation,
DeWitt, Arkansas
First Union Corporation,
Charlotte, North Carolina
First United Bancshares, Inc.,
El Dorado, Arkansas
Greater Community Bancorp,
Totowa, New Jersey
Inland Northwest Bancorporation,
Inc.,
Spokane, Washington
Magna Group, Inc.,
St. Louis, Missouri
Charter Financial, Inc.,
Sparta, Illinois
Charter Bank, S.B.,
Sparta, Illinois
374
Federal Reserve Bulletin • May 1998
Section 4—Continued
Applicant(s)
Nonbanking Activity/Company
Reserve Bank
Effective Date
Midwest Bankers' Bancorporation,
Inc.,
Jefferson City, Missouri
One Valley Bancorp, Inc.,
Charleston, West Virginia
Missouri Trust Company,
Jefferson City, Missouri
St. Louis
February 25, 1998
FFVA Financial Corporation,
Lynchburg, Virginia
Richmond
March 5, 1998
Applicant(s)
Nonbanking Activity/Company
Reserve Bank
Effective Date
Flag Financial Corporation,
LaGrange, Georgia
Middle Georgia Bankshares, Inc.,
Unadilla, Georgia
First Federal Savings Bank of
LaGrange,
LaGrange, Georgia
Piedmont Mortgage Service, Inc.,
LaGrange, Georgia
Pro Image,
Macon, Georgia
SBT Bankshares, Inc.,
Colorado Springs, Colorado
State Bank and Trust of Colorado
Springs,
Colorado Springs, Colorado
SBT Mortgage, LLC,
Colorado Springs, Colorado
Atlanta
March 13, 1998
San Francisco
March 24, 1998
Sections 3 and 4
Zions Bancorporation,
Salt Lake City, Utah
Val Cor Bancorporation, Inc.,
Cortez, Colorado
APPLICATIONS APPROVED UNDER BANK MERGER ACT
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to
the Reserve Banks.
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
Community First Bank and Trust,
Celina, Ohio
F&M Bank-Blakeley, Inc.,
Ranson, West Virginia
The Union State Bank,
Payne, Ohio
F&M Bank-Keyser, Inc.,
Keyser, West Virginia
F&M Bank-Martinsburg,
Martinsburg, West Virginia
Peoples Bank of Virginia,
Chesterfield, Virginia
First Banking Center-Albany,
Albany, Wisconsin
National City Bank of Indiana,
Indianapolis, Indiana
Cleveland
March 4, 1998
Richmond
February 25, 1998
Richmond
March 11, 1998
Chicago
March 20, 1998
Chicago
February 26, 1998
Chicago
February 27, 1998
F&M Bank-Richmond,
Richmond, Virginia
First Banking Center-Burlington,
Burlington, Wisconsin
First Farmers Bank & Trust
Company,
Converse, Indiana
Isabella Bank and Trust,
Mt. Pleasant, Michigan
Old Kent Bank,
Grand Rapids, Michigan
Legal Developments
Applications Approved Under Bank Merger Act—Continued
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
M&I Bank of Burlington,
Burlington, Wisconsin
Advantage Burlington Interim Bank,
FSB,
Kenosha, Wisconsin
Advantage Bank, FSB,
Kenosha, Wisconsin
Advantage Wisconsin Interim Bank,
FSB,
Kenosha, Wisconsin
M&l Bank South,
Janesville, Wisconsin
M&I Bank of Burlington,
Burlington, Wisconsin
Merchants & Planters Bank,
Montevallo, Alabama
Chicago
February 25, 1998
Chicago
February 25, 1998
Chicago
February 25, 1998
Chicago
February 25, 1998
Chicago
February 25, 1998
Atlanta
March 24, 1998
Richmond
February 23, 1998
Richmond
February 23, 1998
San Francisco
March 12, 1998
M&I Bank of Racine,
Racine, Wisconsin
M&I Marshall & llsley Bank,
Milwaukee, Wisconsin
M&I Marshall & llsley Bank,
Milwaukee, Wisconsin
M&I Marshall & llsley Bank,
Milwaukee, Wisconsin
The Peoples Bank and Trust
Company,
Selma, Alabama
Triangle Bancorp, Inc.,
Raleigh, North Carolina
Triangle Bank,
Raleigh, North Carolina
Valley Independent Bank,
El Centra, California
Guaranty State Bancorp,
Durham, North Carolina
Guaranty State Bank,
Durham, North Carolina
Palm Desert National Bank,
Palm Desert, California
PENDING CASES INVOLVING THE BOARD OF GOVERNORS
This list of pending cases does not include suits against the
Federal Reserve Banks in which the Board of Governors is not
named a party.
Inner City Press/Community on the Move v. Board of Governors, No. 97-1514 (U.S. Supreme Court, filed March 12,
1998). Petition for writ of certiorari to review dismissal by
the United States Court of Appeals for the District of
Columbia Circuit of a petition for review of a Board order
dated May 14, 1997, approving the application of Bane One
Corporation, Inc., Columbus, Ohio, to merge with First
USA, Inc., Dallas, Texas.
Logan v. Greenspan, No. l:98CV00049 (D.D.C., filed January 9, 1998). Employment discrimination complaint.
Goldman v. Department of the Treasury, No. 1-97-CV-3798
(N.D. Ga., filed December 23, 1997). Declaratory judgment
action challenging Federal Reserve notes as lawful money.
On March 2, 1998, the Board filed a motion to dismiss the
action.
Kerr v. Department of the Treasury, No. CV-S-97-01877DWH (S.D. Nev., filed December 22, 1997). Challenge to
income taxation and Federal Reserve notes.
Allen v. Indiana Western Mortgage Corp., No. 97-7744 RJK
(CD. Cal., filed November 12, 1997). Customer dispute
with a bank.
Patrick v. United States, No. 97-75564 (E.D. Mich., filed
November 7, 1997). Action for damages arising out of tax
dispute.
Leuthe v. Office of Financial Institution Adjudication, No.
97-1826 (3d Cir., filed October 22,1997). Appeal of district
court dismissal of action against the Board and other Federal banking agencies challenging the constitutionality of
the Office of Financial Institution Adjudication. Oral argument is scheduled for May 23, 1998.
Patrick v. United States, No. 97-75017 (E.D. Mich., filed
September 30, 1997). Action for damages arising out of tax
dispute.
Artis v. Greenspan, No. 97-5234 (D.C. Cir., filed September 19, 1997). Appeal of district court order dismissing
employment discrimination action. On January 29, 1998,
the Court of Appeals granted the Board's motion for summary affirmance of the District Court's dismissal of the
complaint.
Artis v. Greenspan, No. 97-5235 (D.C. Cir., filed September 19, 1997). Appeal of district court order dismissing
employment discrimination class action.
Towe v. Board of Governors, No. 97-71143 (9th Cir., filed
September 15, 1997). Petition for review of a Board order
dated August 18, 1997, prohibiting Edward Towe and
Thomas E. Towe from further participation in the banking
industry.
Branch v. Board of Governors, No. 97-5229 (D.C. Cir., filed
September 12, 1997). Appeal of district court order denying
motion to compel production of pre-decisional supervisory
documents and testimony sought in connection with an
action by Bank of New England Corporation's trustee in
bankruptcy against the Federal Deposit Insurance Corpora-
376
Federal Reserve Bulletin • May 1998
tion. On November 10, 1997, the court denied appellant's
request for expedited consideration of the appeal. Oral
argument is scheduled for May 4, 1998.
Clarkson v. Greenspan, No. 97-CV-2035 (D.D.C., filed September 5, 1997). Freedom of Information Act case. On
January 20, 1998, the Board filed a motion to dismiss the
action.
Banking Consultants of America v. Board of Governors, No.
97-2791 (W.D. Tenn., filed September 2, 1997). Action to
enjoin investigation by the Board, the Office of the Comptroller of the Currency, and the Department of Labor. On
January 23, 1998, the court granted the Board's motion to
dismiss the action.
Bettersworth v. Board of Governors, No. 97-CA-624 (W.D.
Tex., filed August 21, 1997). Privacy Act case.
Wilkins v. Warren, No. 98-1320 (4th Cir. 1998). Appeal of
District Court dismissal of action involving customer dispute with a bank.
Greeff v. Board of Governors, No. 97-1976 (4th Cir., filed
June 17, 1997). Petition for review of a Board order dated
May 19, 1997, approving the application of by Allied Irish
Banks, pic, Dublin, Ireland, and First Maryland Bancorp,
Baltimore, Maryland, to acquire Dauphin Deposit Corporation, Harrisburg, Pennsylvania, and thereby acquire Dauphin's banking and nonbanking subsidiaries.
Maunsell v. Greenspan, No. 97-6131 (2d Cir., filed May 22,
1997). Appeal of district court dismissal of action for compensatory and punitive damages for alleged violations of
civil rights by federal savings bank.
Vickery v. Board of Governors, No. 97-1344 (D.C. Cir., filed
May 9, 1997). Petition for review of a Board order dated
April 14, 1997, prohibiting Charles R. Vickery, Jr., from
further participation in the banking industry. Oral argument
was heard on February 24, 1998, and on March 3, 1998, the
court of appeals affirmed the Board's order.
Pharaon v. Board of Governors, No. 97-1114 (D.C. Cir., filed
February 28, 1997). Petition for review of a Board order
dated January 31, 1997, imposing civil money penalties and
an order of prohibition for violations of the Bank Holding
Company Act. Oral argument was held on December 8,
1997, and on February 10, 1998, the court of appeals
affirmed the Board's order. On March 26, 1998, petitioner
filed a motion for rehearing and rehearing en bane.
The New Mexico Alliance v. Board of Governors, No. 981049 (D.C. Cir., transferred as of January 21, 1998). Petition for review of a Board order dated December 16, 1996,
approving the acquisition by NationsBank Corporation and
NB Holdings Corporation, both of Charlotte, North Carolina, of Boatmen's Bancshares, Inc., St. Louis, Missouri. On
January 21, 1998, the United States Court of Appeals for
the Tenth Circuit ordered the petition transferred to the
United States Court of Appeals for the District of Columbia
Circuit. On March 23, 1998, the Board moved to dismiss
the petition.
American Bankers Insurance Group, Inc. v. Board of Governors, No. 96-CV-2383-EGS (D.D.C., filed October 16,
1996). Action seeking declaratory and injunctive relief invalidating a new regulation issued by the Board under the
Truth in Lending Act relating to treatment of fees for debt
cancellation agreements. On October 18, 1996, the district
court denied plaintiffs' motion for a temporary restraining
order. On January 17, 1997, the parties filed cross-motions
for summary judgment.
Board of Governors v. Pharaon, No. 91-CIV-6250 (S.D. New
York, filed September 17, 1991). Action to freeze assets of
individual pending administrative adjudication of civil
money penalty assessment by the Board. On September 17,
1991, the court issued an order temporarily restraining the
transfer or disposition of the individual's assets. On
March 16, 1998, the district court granted in part and denied
in part the Board's motion for summary judgment.
FINAL ENFORCEMENT ORDERS ISSUED BY THE BOARD
OF GOVERNORS
Habib Bank AG Zurich
Zurich, Switzerland
The Federal Reserve Board announced on March 25, 1998,
the issuance of an Order of Assessment of a Civil Money
Penalty against the Habib Bank AG Zurich, Zurich, Switzerland, and Habib Bank's Branch in Los Angeles, California.
OmniBank
River Rouge, Michigan
The Federal Reserve Board announced on March 16, 1998,
the issuance of a Prompt Corrective Action Directive
against OmniBank, River Rouge, Michigan.
Pan American Bank
Miami, Florida
The Federal Reserve Board announced on March 9, 1998,
the issuance of a Cease and Desist Order against the
PanAmerican Bank, Miami, Florida.
TERMINATION OF ENFORCEMENT ACTIONS
The Federal Reserve Board announced on March 20, 1998,
the termination of the following enforcement actions:
The Bank of Versailles
Versailles, Missouri
Cease and Desist Order dated December 6, 1994—
terminated February 26, 1998.
The Security State Bank of Pecos
Pecos, Texas
Cease and Desist Order dated October 17, 1995—
terminated February 23, 1998.
Millennium Bank
San Francisco, California
Written Agreement dated June 8, 1992—terminated February 11, 1998.
377
Directors of
Federal Reserve Banks and Branches
Regional decentralization and a combination of governmental and private characteristics are important hallmarks
of the uniqueness of the Federal Reserve System. Under
the Federal Reserve Act, decentralization was achieved by
division of the country into twelve regions called Federal
Reserve Districts and the establishment in each District of
a separately incorporated Federal Reserve Bank with its
own board of directors. The blending of governmental and
private characteristics is provided through ownership of the
stock of the Reserve Bank by member banks in its District,
which also elect the majority of the board of directors, and
by the general supervision of the Reserve Banks by the
Board of Governors, an agency of the federal government.
The Board also appoints a minority of each board of
directors. Thus, there are essential elements of regional
participation and counsel in the conduct of the System's
affairs for which the Federal Reserve relies importantly on
the contributions of the directors of the Federal Reserve
Banks and Branches.
The following list of directors of Federal Reserve Banks
and Branches shows for each director the class of directorship, the principal business affiliation, and the date the
current term expires. Each Federal Reserve Bank has nine
members on its board of directors: The member banks elect
the three Class A and three Class B directors, and the
Board of Governors appoints the three directors in Class C.
Directors are chosen without discrimination as to race,
creed, color, sex, or national origin.
Class A directors of each Reserve Bank represent the
stockholding member banks of the Federal Reserve District. Class B and Class C directors represent the public and
are chosen with due, but not exclusive, consideration to the
interests of agriculture, commerce, industry, services, labor,
and consumers; they may not be officers, directors, or
employees of any bank. In addition, Class C directors may
not be stockholders of any bank. The Board of Governors
designates annually one Class C director as chairman of
the board of directors of each District Bank and designates
another Class C director as deputy chairman.
Each of the twenty-five Branches of the Federal Reserve
Banks has a board of either seven or five directors, a
majority of whom are appointed by the parent Federal
Reserve Bank; the others are appointed by the Board of
Governors. One of the Board's appointees is designated
annually as chairman of the board of that Branch in a
manner prescribed by the parent Federal Reserve Bank.
The names of the chairman and deputy chairman of the
board of directors of each Reserve Bank and of the chairman of each Branch are published monthly in the Federal
Reserve Bulletin.l
1. The current list appears on page A84 of this Bulletin.
Term expires
December 31
DISTRICT 1—BOSTON
Class A
Marshall N. Carter
G. Kenneth Perine
Edwin N. Clift
Chairman and Chief Executive Officer, State Street Bank and Trust
Company, Boston, Massachusetts
President and Chief Executive Officer, National Bank of Middlebury,
Middlebury, Vermont
President and Chief Executive Officer, Merrill Merchants Bank,
Bangor, Maine
1998
1999
2000
Class B
Robert R. Glauber
Stephen L. Brown
Edward Dugger III
Adjunct Lecturer, John F. Kennedy School of Government, Harvard
University, Cambridge, Massachusetts
Chairman and Chief Executive Officer, John Hancock Mutual Life
Insurance Company, Boston, Massachusetts
President and Chief Executive Officer, UNC Ventures, Inc.,
Boston, Massachusetts
1998
1999
2000
Class C
William C. Brainard
William O. Taylor
James J. Norton
Professor of Economics, Yale University, New Haven, Connecticut
Chairman and Chief Executive Office, Globe Newspaper Company,
Boston, Massachusetts
President, Graphic Communications International Union, Washington, D.C.
1998
1999
2000
378
Federal Reserve Bulletin • May 1998
Term Expires
December 31
DISTRICT 2—NEW YORK
Class A
Robert G. Wilmers
George W. Hamlin IV
Walter V. Shipley
Chairman and Chief Executive Officer, Manufacturers and Traders Trust
Company, Buffalo, New York
President and Chief Executive Officer, The Canandaigua National Bank
and Trust Company, Canandaigua, New York
Chairman and Chief Executive Officer, The Chase Manhattan Corporation,
New York, New York
1998
1999
2000
Class B
Ronay Menschel
Ann Marie Fudge
Eugene R. McGrath
President, Phipps Houses, New York, New York
Executive Vice President, Kraft Foods, Inc., and President, Coffee &
Cereals Division, Tarrytown, New York
Chairman, President, and Chief Executive Officer, Consolidated Edison
Company of New York, Inc., New York, New York
1998
1999
2000
Class C
Peter G. Peterson
John C. Whitehead
Thomas W. Jones
BUFFALO
Chairman, The Blackstone Group, New York, New York
Former Chairman, Goldman, Sachs & Co., Inc., New York, New York
Vice Chairman, Travelers Group, and Chairman and Chief Executive
Officer, Smith Barney Asset Management, New York, New York
1998
1999
2000
BRANCH
Appointed by the Federal Reserve Bank
Kathleen R. Whelehan
Louise C. Woerner
William E. Swan
Mark W. Adams
Regional President, Marine Midland Bank, Rochester, New York
Chairman and Chief Executive Officer, HCR, Rochester, New York
President and Chief Executive Officer, Lockport Savings Bank,
Lockport, New York
Owner and Operator, Adams Poultry Farm, Naples, New York
1998
1999
2000
2000
Appointed by the Board of Governors
Bal Dixit
Patrick P. Lee
Louis J. Thomas
DISTRICT
President and Chief Executive Officer, Newtex Industries, Inc.,
Victor, New York
Chairman and Chief Executive Officer, International Motion Control, Inc.,
Buffalo, New York
Director, District 4, United Steelworkers of America, Cheektowaga,
New York
1998
1999
2000
3—PHILADELPHIA
Class A
Albert B. Murry
David B. Lee
Harry Elwell III
President and Chief Executive Officer, Lebanon Valley National Bank,
Lebanon, Pennsylvania
President and Chief Executive Officer, Omega Bank, N.A.,
State College, Pennsylvania
President and Chief Executive Officer, First National Bank of Absecon,
Absecon, New Jersey
1998
1999
2000
Class B
Howard E. Cosgrove
J. Richard Jones
Robert D. Burris
Chairman and Chief Executive Officer, Conectiv (Delmarva Power and
Light Company), Wilmington, Delaware
President and Chief Executive Officer, Jackson-Cross Company,
Philadelphia, Pennsylvania
President and Chief Executive Officer, Burris Foods, Inc.,
Milford, Delaware
1998
1999
2000
Directors of Federal Reserve Banks and Branches
DISTRICT
3—PHILADELPHIA—Continued
379
Term Expires
December 31
Class C
Charisse R. Lillie
Joan Carter
Glenn A. Schaeffer
DISTRICT
Partner, Ballard Spahr Andrews & Ingersoll, Philadelphia, Pennsylvania
President and Chief Operating Officer, UM Holdings Ltd., Haddonfield,
New Jersey
President, Pennsylvania Building and Construction Trades Council,
Harrisburg, Pennsylvania
1998
1999
2000
4—CLEVELAND
Class A
David A. Daberko
Tiney M. McComb
David S. Dahlmann
Chairman and Chief Executive Officer. National City Corporation,
Cleveland, Ohio
Chairman and President, Heartland BancCorp, Gahanna, Ohio
President and Chief Executive Officer, Southwest National Corporation,
Greensburg, Pennsylvania
1998
1999
2000
Class B
I.N. Rendall Harper, Jr.
David L. Nichols
Michele Tolela Myers
President and Chief Executive Officer, American Micrographics Company,
Inc., Monroeville, Pennsylvania
Chairman and Chief Executive Officer, Mercantile Stores Inc.,
Fairfield, Ohio
President, Denison University, Granville, Ohio
1998
1999
2000
Class C
David H. Hoag
Robert Y. Farrington
G. Watts Humphrey, Jr.
Chairman and Chief Executive Officer, The LTV Corporation,
Cleveland, Ohio
Executive Secretary-Treasurer, Ohio State Building and Construction
Trades Council, Columbus, Ohio
President, GWH Holdings, Inc., Pittsburgh, Pennsylvania
1998
1999
2000
CINCINNATI BRANCH
Appointed by the Federal Reserve Bank
Jean R. Hale
Judith G. Clabes
Phillip R. Cox
Stephen P. Wilson
President and Chief Executive Officer, Community Trust Bank, N.A.,
Pikeville, Kentucky
President and Chief Executive Officer, Scripps Howard, Cincinnati, Ohio
President, Cox Financial Corporation, Cincinnati, Ohio
President and Chief Executive Officer, Lebanon Citizens National Bank,
Lebanon, Ohio
1998
1999
1999
2000
Appointed by the Board of Governors
Thomas Revely III
George C. Juilfs
Wayne Shumate
PITTSBURGH
President and Chief Executive Officer, Cincinnati Bell Supply Co.,
Cincinnati, Ohio
President and Chief Executive Officer, SENCORP, Newport, Kentucky
Chairman and Chief Executive Officer, Kentucky Textiles, Inc.,
Paris, Kentucky
1998
1999
2000
BRANCH
Appointed by the Federal Reserve Bank
Edward V. Randall, Jr.
Georgia Berner
Peter N. Stephans
Thomas J. O'Shane
President and CEO/Pittsburgh, PNC Bank, N.A., Pittsburgh, Pennsylvania
President, Berner International Corp., New Castle, Pennsylvania
Chairman and Chief Executive Officer, Trigon Incorporated,
McMurray, Pennsylvania
Chairman, President, and Chief Executive Officer, First Western Bancorp,
Inc., New Castle, Pennsylvania
1998
1999
1999
2000
380
Federal Reserve Bulletin • May 1998
Term Expires
DISTRICT 4—CLEVELAND—Continued
December 31
PITTSBURGH BRANCH—Continued
Appointed by the Board of Governors
Gretchen R. Haggerty
Charles E. Bunch
John T. Ryan III
Vice President-Accounting and Finance, U.S. Steel Group, USX,
Pittsburgh, Pennsylvania
Senior Vice President, Strategic Planning and Corporate Services, PPG
Industries, Inc., Pittsburgh, Pennsylvania
Chairman, President, and Chief Executive Officer, Mine Safety Appliances
Company, Pittsburgh, Pennsylvania
1998
1999
2000
DISTRICT 5—RICHMOND
Class A
George A. Didden III
J. Walter McDowell
Elizabeth A. Duke
Chairman and Chief Executive Officer, The National Capital Bank of
Washington, Washington, D.C.
President-North Carolina Banking, Wachovia Bank, N.A., Winston-Salem,
North Carolina
President and Chief Executive Officer, Bank of Tidewater,
Virginia Beach, Virginia
1998
1999
2000
Class B
Craig A. Ruppert
Wesley S. Williams, Jr.
James E. Haden
President and Owner, The Ruppert Companies, Ashton, Maryland
Partner, Covington & Burling, Washington, D.C.
President and Chief Executive Officer, Martha Jefferson Hospital,
Charlottesville, Virginia
1998
1999
2000
Retired Chairman, Lowe's Companies, Inc., Winston-Salem,
North Carolina
Chairman and Chief Executive Officer, Reynolds Metals Company,
Richmond, Virginia
President, Financial & Management Consulting, Inc., McLean, Virginia
1998
Class C
Robert L. Strickland
Jeremiah J. Sheehan
Claudine B. Malone
1999
2000
BALTIMORE BRANCH
Appointed by the Federal Reserve Bank
Jeremiah E. Casey
Morton I. Rapoport
William L. Jews
Virginia W. Smith
Chairman, First Maryland Bancorp, Baltimore, Maryland
President and Chief Executive Officer, University of Maryland Medical
System, Baltimore, Maryland
President and Chief Executive Officer, Blue Cross Blue Shield of
Maryland, Owings Mills, Maryland
President and Chief Executive Officer, Union National Bank,
Westminster, Maryland
1998
1999
2000
2000
Appointed by the Board of Governors
Daniel R. Baker
George L. Russell, Jr.
Betty Bednarczyk
President and Chief Executive Officer, Tate Access Floors, Inc.,
Jessup, Maryland
Partner, Piper & Marbury L.L.P., Baltimore, Maryland
International Secretary-Treasurer, Service Employees International Union,
Washington, D.C.
1998
1999
2000
CHARLOTTE BRANCH
Appointed by the Federal Reserve Bank
William H. Nock
Laura M. Fleming
Katharine W. McKee
Cecil W. Sewell, Jr.
President and Chief Executive Officer, Sumter National Bank,
Sumter, South Carolina
President and Chief Executive Officer, Founders Federal Credit Union,
Lancaster, South Carolina
Associate Director, Self-Help, Durham, North Carolina
Chairman and Chief Executive Officer, Centura Bank, Rocky Mount,
North Carolina
1998
1999
2000
2000
Directors of Federal Reserve Banks and Branches
DISTRICT 5—RICHMOND—Continued
CHARLOTTE
381
Term Expires
December 31
BRANCH—Continued
Appointed by the Board of Governors
James O. Roberson
Dennis D. Lowery
Joan H. Zimmerman
President and Chief Executive Officer, Research Triangle Foundation of
North Carolina, Research Triangle Park, North Carolina
Chief Executive Officer and Chairman, Continental Industrial
Chemicals, Inc., Charlotte, North Carolina
President, Southern Shows, Inc., Charlotte, North Carolina
1998
1999
2000
DISTRICT 6—ATLANTA
Class A
Waymon L. Hickman
Howard L. McMillan, Jr.
D. Paul Jones, Jr.
Chairman and Chief Executive Officer, First Farmers and Merchants
National Bank, Columbia, Tennessee
President and Chief Operating Officer, Deposit Guaranty National Bank,
Jackson, Mississippi
Chairman and Chief Executive Officer, Compass Bancshares, Inc.,
Birmingham, Alabama
1998
1999
2000
Class B
Suzanne E. Boas
Juanita P. Baranco
Maria Camila Leiva
President, Consumer Credit Counseling Service of Greater Atlanta,
Atlanta, Georgia
Executive Vice President, Baranco Automotive Group, Lilburn, Georgia
Executive Vice President, Miami Free Zone Corporation, Miami, Florida
1998
1999
2000
Chairman, AGL Resources Inc., Atlanta, Georgia
President, John Wieland Homes, Inc., Atlanta, Georgia
President, Lovell Communications, Inc., Nashville, Tennessee
1998
1999
2000
Class C
David R. Jones
John Wieland
Paula Lovell
BIRMINGHAM
BRANCH
Appointed by the Federal Reserve Bank
J. Stephen Nelson
W. Charles Mayer III
Roland Pugh
Hundley Batts, Sr.
Chairman and Chief Executive Officer, First National Bank of Brewton,
Brewton, Alabama
Senior Executive Vice President, AmSouth Bancorporation, and President,
Alabama Banking Group, AmSouth Bank, Birmingham, Alabama
Chairman, Roland Pugh Construction, Inc., Northport, Alabama
Managing Agent, Hundley Batts & Associates Insurance Agency,
Huntsville, Alabama
1998
1999
2000
2000
Appointed by the Board of Governors
Patricia B. Compton
V. Larkin Martin
D. Bruce Carr
President, Patco, Inc., Georgiana, Alabama
Managing Partner, Martin Farm, Courtland, Alabama
Labor-Relations Liaison, Laborers' District Council of Alabama,
Gadsden, Alabama
1998
1999
2000
JACKSONVILLE BRANCH
Appointed by the Federal Reserve Bank
Royce B. Walden
President, Walden Enterprises, Inc., Orlando, Florida
William G. Smith, Jr.
President, Capital City Bank Group, Tallahassee, Florida
Terry R. West
President and Chief Executive Officer, Jax Navy Federal Credit Union,
Jacksonville, Florida
Michael W. Poole
Principal, Poole Carbone Capital Partners, Inc., Winter Park, Florida
1998
1999
2000
2000
382
Federal Reserve Bulletin • May 1998
DISTRICT
6—ATLANTA—Continued
JACKSONVILLE
Term Expires
December 31
BRANCH—Continued
Appointed by the Board of Governors
Judy Jones
Marsha G. Rydberg
William E. Flaherty
MIAMI
President, J.R. Jones and Associates, Tallahassee, Florida
Partner, Foley & Lardner, Tampa, Florida
Chairman and Chief Executive Officer, Blue Cross and Blue Shield of
Florida, Inc., Jacksonville, Florida
1998
1999
2000
BRANCH
Appointed by the Federal Reserve Bank
E. Anthony Newton
D. Keith Cobb
James W. Moore
Carlos A. Migoya
Past President and Chief Executive Officer, Island National Bank and Trust
Company, Palm Beach, Florida
Former Vice Chairman and Chief Executive Officer, Alamo
Rent-A-Car, Inc., Ft. Lauderdale, Florida
President, Gulf Utility Company, Fort Myers, Florida
President, Dade/Monroe Counties, First Union National Bank of Florida,
Miami, Florida
1998
1999
1999
2000
Appointed by the Board of Governors
R. Kirk Landon
Mark T. Sodders
Kaaren Johnson-Street
Chairman, American Bankers Insurance Group, Miami, Florida
President, Lakeview Farms, Inc., Pahokee, Florida
Vice President of Minority Business Development and Urban Initiatives,
Enterprise Florida, Coral Gables, Florida
1998
1999
2000
NASHVILLE BRANCH
Appointed by the Federal Reserve Bank
Dale W. Polley
Leonard A. Walker, Jr.
James E. Dalton, Jr.
John E. Seward, Jr.
President, First American National Bank, Nashville, Tennessee
Chairman, President, and Chief Executive Officer, First National Bank
and Trust Company, Athens, Tennessee
President and Chief Executive Officer, Quorum Health Group, Inc.,
Brentwood, Tennessee
President and Chief Executive Officer, Paty Lumber Company, Inc.,
Piney Flats, Tennessee
1998
1999
2000
2000
Appointed by the Board of Governors
Frances F. Marcum
Michael E. Bennett
N. Whitney Johns
NEW ORLEANS
Chairman and Chief Executive Officer, Micro Craft, Inc., Tullahoma,
Tennessee
UAW Manufacturing Advisor, UAW Local 1853, Saturn Corporation,
Spring Hill, Tennessee
Chairman and Chief Executive Officer, Whitney Johns & Company,
Nashville, Tennessee
1998
1999
2000
BRANCH
Appointed by the Federal Reserve Bank
Howell N. Gage
Howard C. Gaines
Teri G. Fontenot
David Guidry
Chairman and Chief Executive Officer, Merchants Bank, Vicksburg,
Mississippi
Chairman, First National Bank of Commerce, New Orleans, Louisiana
President and Chief Executive Officer, Woman's Health
Foundation/Woman's Hospital, Baton Rouge, Louisiana
President and Chief Executive Officer, Guico Machine Works, Inc.,
Harvey, Louisiana
1998
1999
2000
2000
Directors of Federal Reserve Banks and Branches
DISTRICT
6—ATLANTA—Continued
383
Term Expires
December 31
NEW ORLEANS BRANCH—Continued
Appointed by the Board of Governors
Lucimarian Roberts
Glenn Pumpelly
Jackie Ducote
Community Advocate, Biloxi, Mississippi
President and Chief Executive Officer, Pumpelly Oil Inc., Westlake,
Louisiana
President, Public Affairs Research Council of Louisiana, Baton Rouge,
Louisiana
1998
1999
2000
DISTRICT 7—CHICAGO
Class A
Arnold C. Schultz
Verne G. Istock
Robert R. Yohanan
Chairman and Chief Executive Officer, Grundy National Bank, Grundy
Center, Iowa
Chairman, President, and Chief Executive Officer, First Chicago NBD
Corporation, Chicago, Illinois
Managing Director and Chief Executive Officer, First Bank & Trust of
Evanston, Evanston, Illinois
1998
1999
2000
Class B
Donald J. Schneider
Migdalia Rivera
Jack B. Evans
President, Schneider National, Inc., Green Bay, Wisconsin
Executive Director, Latino Institute, Chicago, Illinois
President, The Hall-Perrine Foundation, Cedar Rapids, Iowa
1998
1999
2000
Chairman and Chief Executive Officer, Sears, Roebuck & Co.,
Hoffman Estates, Illinois
Chairman, President, and Chief Executive Officer, Inland Steel
Industries, Inc., Chicago, Illinois
Managing Partner, Washington, Pittman & McKeever, Chicago, Illinois
1998
Class C
Arthur C. Martinez
Robert J. Darnall
Lester H. McKeever, Jr.
DETROIT
1999
2000
BRANCH
Appointed by the Federal Reserve Bank
Richard M. Bell
Denise Hitch Lites
Irma B. Elder
David J. Wagner
President and Chief Executive Officer, The First National Bank of
Three Rivers, Three Rivers, Michigan
Vice Chairwoman, Little Caesars Enterprises, and President, Olympia
Development, Inc., Detroit, Michigan
President, Troy Motors, Inc., Troy, Michigan
Chairman, President, and Chief Executive Officer, Old Kent Financial
Corporation, Grand Rapids, Michigan
1998
1999
1999
2000
Appointed by the Board of Governors
Stephen R. Polk
Florine Mark
Timothy D. Leuliette
Chairman and Chief Executive Officer, R.L. Polk & Co., Detroit, Michigan
President and Chief Executive Officer, The WW Group, Inc.,
Farmington Hills, Michigan
President and Chief Operating Officer, Penske Corporation, Detroit,
Michigan
1998
1999
2000
DISTRICT 8—ST. LOUIS
Class A
Douglas M. Lester
W.D. Glover
Michael A. Alexander
President and Chief Executive Officer, Sea Change Corp., Bowling Green,
Kentucky
Chairman and Chief Executive Officer, First National Bank of Eastern
Arkansas, Forrest City, Arkansas
Chairman and President, The First National Bank of Mount Vernon,
Mount Vernon, Illinois
1998
1999
2000
384
Federal Reserve Bulletin • May 1998
DISTRICT 8—ST. LOUIS—Continued
Class B
Richard E. Bell
Joseph E. Glassner, Jr.
Robert L. Johnson
Term Expires
December 31
President and Chief Executive Officer, Riceland Foods, Inc., Stuttgart,
Arkansas
Executive Director, New Directions Housing Corp., Louisville, Kentucky
Chairman and Chief Executive Officer, Johnson Bryce, Inc., Memphis,
Tennessee
1998
1999
2000
Class C
John F. McDonnell
Veo Peoples, Jr.
Susan S. Elliott
Former Chairman, McDonnell Douglas Corporation, St. Louis, Missouri
Peoples, LLC, St. Louis, Missouri
President and Chief Executive Officer, Systems Service Enterprises, Inc.,
St. Louis, Missouri
1998
1999
2000
LITTLE ROCK BRANCH
Appointed by the Federal Reserve Bank
Mark A. Shelton III
President, M.A. Shelton Farming Company, Wabbaseka, Arkansas
Mark Simmons
Chairman, Simmons Foods, Inc., Siloam Springs, Arkansas
Ross M. Whipple
Chairman and Chief Executive Officer, Horizon Bancorp, Inc.,
Arkadelphia, Arkansas
Lunsford W. Bridges
President and Chief Executive Officer, Metropolitan National Bank,
Little Rock, Arkansas
Appointed by the Board of Governors
Betta M. Carney
Chairman and Chief Executive Officer, World Wide Travel Service, Inc.,
Little Rock, Arkansas
Janet M. Jones
President, The Janet Jones Company, Little Rock, Arkansas
Diana T. Hueter
President and Chief Executive Officer, St. Vincent Health Systems,
Little Rock, Arkansas
1998
1999
1999
2000
1998
1999
2000
LOUISVILLE BRANCH
Appointed by the Federal Reserve Bank
Orson Oliver
President, Mid-America Bank of Louisville & Trust Co., Louisville,
Kentucky
Larry E. Dunigan
Chairman and Chief Executive Officer, Holiday Management Corp.,
Evansville, Indiana
Ronald R. Cyrus
Executive Secretary-Treasurer, Kentucky State AFL-CIO, Frankfort,
Kentucky
Aubrey W. Lippert
Chairman and Chief Executive Officer, Peoples First Corporation,
Paducah, Kentucky
Appointed by the Board of Governors
Roger Reynolds
President and Chief Executive Officer, The Reynolds Group, Inc.,
Louisville, Kentucky
Joseph W. Prather
Chairman, Service First Warehouse and Distribution, Inc., Elizabethtown,
Kentucky
Debbie Scoppechio
Chairman and Chief Executive Officer, Creative Alliance, Inc., Louisville,
Kentucky
1998
1999
1999
2000
1998
1999
2000
Directors of Federal Reserve Banks and Branches
DISTRICT 8—ST. LOUIS—Continued
385
Term Expires
December 31
MEMPHIS BRANCH
Appointed by the Federal Reserve Bank
Anthony M. Rampley
Katie S. Winchester
John C. Kelley, Jr.
E.C. Neelly III
President and Chief Executive Officer, Arkansas Glass Container
Corporation, Jonesboro, Arkansas
President and Chief Executive Officer, First Citizens National Bank,
Dyersburg, Tennessee
President, Memphis Banking Group, First Tennessee Bank, Memphis,
Tennessee
Chief Executive Officer, First American National Bank, Iuka, Mississippi
1998
1999
1999
2000
Appointed by the Board of Governors
John V. Myers
Mike P. Sturdivant, Jr.
Carol G. Crawley
DISTRICT
President, Better Business Bureau, Memphis, Tennessee
Partner, Due West Plantation, Glendora, Mississippi
Vice President & Regional Manager, Mid-America Apartment
Communities, Memphis, Tennessee
1998
1999
2000
President, First National Bank of Sauk Centre, Sauk Centre, Minnesota
President, Ramsey National Bank and Trust Co., Devils Lake,
North Dakota
President, Norwest Bank Montana, Billings, Montana
1998
1999
2000
President, TMI Systems Design Corporation, Dickinson, North Dakota
Vice President, Wheeler Mfg. Co., Inc., Lemmon, South Dakota
Owner, Bitterroot Motors, Missoula, Montana
1998
1999
2000
Chairman, President, and Chief Executive Officer, Northern States Power
Company, Minneapolis, Minnesota
Chairman, Graco, Inc., Plymouth, Minnesota
President, United Food & Commercial Workers, Local 653, Plymouth,
Minnesota
1998
9—MINNEAPOLIS
Class A
Dale J. Emmel
Lynn M. Hoghaug
Bruce Parker
Class B
Dennis W. Johnson
Rob L. Wheeler
Kathryn L. Ogren
Class C
James J. Howard
David A. Koch
Ronald N. Zwieg
HELENA
1999
2000
BRANCH
Appointed by the Federal Reserve Bank
Emil W. Erhardt
Sandra M. Stash
Richard E. Hart
Chairman and President, Citizens State Bank, Hamilton, Montana
Vice President, Environmental Services, ARCO Environmental
Remediation L.L.C., Anaconda, Montana
President, Mountain West Bank, Great Falls, Montana
1998
1998
1999
Appointed by the Board of Governors
William P. Underriner
Thomas O. Markle
General Manager, Selover Buick Inc., Billings, Montana
President and Chief Executive Officer, Markle's Inc., Glasgow, Montana
1998
1999
President, Chief Executive Officer, and Director, City National Bank,
Greeley, Nebraska
President, FirstBank Holding Company of Colorado, Lakewood, Colorado
President, Bankers' Bank of Kansas, N.A., Wichita, Kansas
1998
DISTRICT 10—KANSAS CITY
Class A
William L. McQuillan
Dennis E. Barrett
Bruce A. Schriefer
1999
2000
386
Federal Reserve Bulletin O May 1998
DISTRICT 10—KANSAS CITY—Continued
Term Expires
December 31
Class B
Frank A. Potenziani
Charles W. Nichols
Hans Helmerich
M & T Trust, Albuquerque, New Mexico
Managing Partner, Davison & Sons Cattle Company, Arnett, Oklahoma
President and Chief Executive Officer, Helmerich & Payne, Inc., Tulsa,
Oklahoma
1998
1999
2000
Office Managing Partner, Ernst & Young LLP, Denver, Colorado
Executive Director, Kansas City Neighborhood Alliance, Kansas City,
Missouri
President and Chief Executive Officer, J.E. Dunn Construction Company,
Kansas City, Missouri
1998
1999
Class C
Jo Marie Dancik
Colleen D. Hernandez
Terrence P. Dunn
2000
DENVER BRANCH
Appointed by the Federal Reserve Bank
Albert C. Yates
C.G. Mammel
President, Colorado State University, Ft. Collins, Colorado
President and Chief Executive Officer, The Bank of Cherry Creek, N.A.,
Denver, Colorado
Chairman and Chief Executive Officer, Sandia Companies, Albuquerque,
New Mexico
President, Rock Springs National Bank, Rock Springs, Wyoming
Robert M. Murphy
John W. Hay III
1998
1999
2000
2000
Appointed by the Board of Governors
Peter I. Wold
Teresa N. McBride
Partner, Wold Oil & Gas Company, Casper, Wyoming
President and Chief Executive Officer, McBride and Associates, Inc.,
Albuquerque, New Mexico
President, Kaiser Permanente, Denver, Colorado
Kathryn A. Paul
OKLAHOMA
CITY
1998
1999
2000
BRANCH
Appointed by the Federal Reserve Bank
Betty Bryant Shaull
Dennis M. Mitchell
William H. Braum
Michael S. Samis
President-Elect and Director, Bank of Cushing and Trust Company,
Cushing, Oklahoma
Vice Chairman, Citizens Bank of Ardmore, Ardmore, Oklahoma
President, Braum Ice Cream Co., Oklahoma City, Oklahoma
President and Chief Executive Officer, Macklanburg-Duncan Co.,
Oklahoma City, Oklahoma
1998
1998
1999
2000
Appointed by the Board of Governors
Barry L. Eller
Larry W. Brummett
Patricia B. Fennell
OMAHA
Senior Vice President and General Manager, MerCruiser, Stillwater,
Oklahoma
Chairman, President, and Chief Executive Officer, ONEOK, Inc., Tulsa,
Oklahoma
Executive Director, Latino Community Development Agency,
Oklahoma City, Oklahoma
1998
1999
2000
BRANCH
Appointed by the Federal Reserve Bank
Robert L. Peterson
Bruce R. Lauritzen
Frank L. Hayes
H. H. Kosman
Chairman, President, and Chief Executive Officer, IBP, Inc., Dakota City,
Nebraska
President, First National Bank of Omaha, Omaha, Nebraska
President, Hayes & Associates, L.L.C., Omaha, Nebraska
Chairman, President, and Chief Executive Officer, Platte Valley National
Bank, Scottsbluff, Nebraska
1998
1999
2000
2000
Directors of Federal Reserve Banks and Branches
DISTRICT 10—KANSAS CITY—Continued
387
Term Expires
December 31
OMAHA BRANCH—Continued
Appointed by the Board of Governors
Gladys Styles Johnston
Bob L. Gottsch
Arthur L. Shoener
Chancellor, University of Nebraska at Kearney, Kearney, Nebraska
Vice President, Gottsch Feeding Corporation, Hastings, Nebraska
Management Consultant, Omaha, Nebraska
1998
1999
2000
President and Chief Executive Officer, The Security State Bank of Pecos,
Pecos, Texas
President and Chief Executive Officer, Texas Independent Bank,
Dallas, Texas
President and Chief Executive Officer, Security Bank, Rails, Texas
1998
Vice President, Semiconductor Group, Texas Instruments, Dallas, Texas
President, Stephen F. Austin State University, Nacogdoches, Texas
Chairman and Chief Executive Officer, Cogen Technologies Energy Group,
Houston, Texas
1998
1999
2000
Chairman and Chief Executive Officer, Ultramar Diamond Shamrock
Corp., San Antonio, Texas
Second General Vice President, International Association of Bridge,
Structural & Ornamental Iron Workers, Austin, Texas
Chairman, President, and Chief Executive Officer, Hunt Consolidated, Inc.,
Dallas, Texas
1998
DISTRICT 11—DALLAS
Class A
Dudley K. Montgomery
Gayle M. Earls
Kirk A. McLaughlin
Class B
Julie S. England
Dan Angel
Robert C. McNair
1999
2000
Class C
Roger R. Hemminghaus
James A. Martin
Ray L. Hunt
EL PASO
1999
2000
BRANCH
Appointed by the Federal Reserve Bank
Lester L. Parker
James D. Renfrow
Melissa W. O'Rourke
Cecil E. Nix
President and Chief Operating Officer, Bank of the West, El Paso, Texas
President and Chief Executive Officer, The Carlsbad National Bank,
Carlsbad, New Mexico
President, Charlotte's Inc., El Paso, Texas
Business Manager, IBEW, Local 460, Midland, Texas
1998
1999
1999
2000
Appointed by the Board of Governors
Beauregard Brite White
Patricia Z. Holland-Branch
Gail S. Darling
HOUSTON
Rancher, J.E. White, Jr. & Sons, Marfa, Texas
President and Chief Executive Officer, HB/PZH Commercial
Environments, Inc., El Paso, Texas
Chief Executive Officer, Gail Darling, Inc., El Paso, Texas
1998
1999
2000
BRANCH
Appointed by the Federal Reserve Bank
J. Michael Solar
Judith B. Craven
Ray B. Nesbitt
John L. Adams
Principal Attorney, Solar & Fernandes L.L.P., Houston, Texas
President, United Way of the Texas Gulf Coast, Houston, Texas
President, Exxon Chemical Company, Houston, Texas
Chairman and Chief Executive Officer, Chase Bank of Texas, N.A.,
Houston, Texas
1998
1999
1999
2000
388
Federal Reserve Bulletin • May 1998
DISTRICT 11—DALLAS—Continued
Term Expires
December 31
HOUSTON BRANCH—Continued
Appointed by the Board of Governors
Edward O. Gaylord
Chairman, EOTT Energy Corp. and General Partner, EOTT Energy
Partners L.P., Houston, Texas
Chief Executive Officer, Laboratories for Genetic Services, Inc.,
Houston, Texas
President, Rice University, Houston, Texas
Peggy Pearce Caskey
Malcolm Gillis
SAN ANTONIO
1998
1999
2000
BRANCH
Appointed by the Federal Reserve Bank
Richard W. Evans, Jr.
Chairman and Chief Executive Officer, Frost National Bank,
San Antonio, Texas
President, The University of Texas at Brownsville, Brownsville, Texas
President, South Texas National Bank, Laredo, Texas
Vice President and General Manager, KVDA-TV 60 Telemundo,
San Antonio, Texas
Juliet V. Garcia
Douglas G. Macdonald
Arthur Emerson
1998
1999
1999
2000
Appointed by the Board of Governors
Carol L. Thompson
Patty P. Mueller
H.B. Zachry, Jr.
DISTRICT
12—SAN
President, The Thompson Group, Austin, Texas
Vice President/Finance, Mueller Energetics, Corpus Christi, Texas
Chairman and Chief Executive Officer, H.B. Zachry Company,
San Antonio, Texas
1998
1999
2000
FRANCISCO
Class A
Warren K.K. Luke
E. Lynn Caswell
John V. Rindlaub
Vice Chairman, President, and Chief Executive Officer, Hawaii National
Bank, Honolulu, Hawaii
Vice Chairman, Monarch Bancorp, Laguna Hills, California
Group Executive Vice President, Bank of America Northwest Group,
Seattle, Washington
1998
1999
2000
Class B
Stanley T. Skinner
Robert S. Attiyeh
Krestine Corbin
Chairman and Chief Executive Officer (Retired), Pacific Gas and Electric
Co., San Francisco, California
Senior Vice President and Chief Financial Officer, Amgen, Inc.,
Thousand Oaks, California
President and Chief Executive Officer, Sierra Machinery, Inc.,
Sparks, Nevada
1998
1999
2000
Class C
Cynthia A. Parker
Gary G. Michael
Nelson C. Rising
Executive Director, Anchorage Neighborhood Housing Services, Inc.,
Anchorage, Alaska
Chairman and Chief Executive Officer, Albertson's, Inc., Boise, Idaho
President and Chief Executive Officer, Catellus Development Corporation,
San Francisco, California
1998
1999
2000
Los ANGELES BRANCH
Appointed by the Federal Reserve Bank
Stephen G. Carpenter
John H. Gleason
Liam E. McGee
Linda Griego
Director, California United Bank, Encino, California
Senior Vice President, Del Webb Corporation, Phoenix, Arizona
Group Executive Vice President, Bank of America, Los Angeles,
California
Managing General Partner, Engine Co. No. 28, Los Angeles, California
1998
1999
2000
2000
Directors of Federal Reserve Banks and Branches
DISTRICT 12—SAN FRANCISCO—Continued
Los ANGELES
389
Term Expires
December 31
BRANCH—Continued
Appointed by the Board of Governors
Anne L. Evans
Lori R. Gay
Lonnie Kane
PORTLAND
Chairman, Evans Hotels, San Diego, California
President, Los Angeles Neighborhood Housing, Los Angeles, California
President, Karen Kane, Inc., Los Angeles, California
1998
1999
2000
BRANCH
Appointed by the Federal Reserve Bank
Gary T. Duim
Phyllis A. Bell
Martin Brantley
Vice Chairman, U.S. Bancorp, Portland, Oregon
President, Oregon Coast Aquarium, Newport, Oregon
President and General Manager, KPTV-12, Oregon Television, Inc.,
Portland, Oregon
President, Chairman, and Chief Executive Officer, Northwest National
Bank, Vancouver, Washington
Thomas C. Young
1998
1999
1999
2000
Appointed by the Board of Governors
Carol A. Whipple
Nancy Wilgenbusch
Patrick Borunda
SALT LAKE CITY
Proprietor, Rocking C Ranch, Elkton, Oregon
President, Marylhurst College, Marylhurst, Oregon
Executive Director, ONABEN—A Native American Business Network,
Portland, Oregon
1998
1999
2000
BRANCH
Appointed by the Federal Reserve Bank
Roy C. Nelson
J. Pat McMurray
Maria Garciaz
R.D. Cash
President, Bank of Utah, Ogden, Utah
President, First Security Bank, N.A., Boise, Idaho
Executive Director, Salt Lake Neighborhood Housing Services,
Salt Lake City, Utah
Chairman, President, and Chief Executive Officer, Questar Corporation,
Salt Lake City, Utah
1998
1999
1999
2000
Appointed by the Board of Governors
Richard E. Davis
Nancy S. Mortensen
Barbara L. Wilson
SEATTLE
President and Chief Executive Officer, Salt Lake Convention & Visitors
Bureau, Salt Lake City, Utah
Vice President-Marketing Services, ZCMI, Salt Lake City, Utah
Regional Vice President, U.S. West, Boise, Idaho
1998
1999
2000
BRANCH
Appointed by the Federal Reserve Bank
Constance L. Proctor
Tomio Moriguchi
James C. Hawkanson
Betsy Lawer
Partner, Alston Courtnage Proctor & Bassetti, LLP, Seattle, Washington
Chairman and Chief Executive Officer, Uwajimaya, Inc., Seattle,
Washington
Managing Director and Chief Executive Officer, The Commerce Bank of
Washington, N.A., Seattle, Washington
Vice Chair and Chief Operating Officer, First National Bank of Anchorage,
Anchorage, Alaska
1998
1999
2000
2000
Appointed by the Board of Governors
Helen M. Rockey
Boyd E. Givan
Richard R. Sonstelie
President and Chief Executive Officer, Brooks Sports, Inc., Bothell,
Washington
Senior Vice President and Chief Financial Officer, The Boeing Company,
Seattle, Washington
Chairman, Puget Sound Energy, Inc., Bellevue, Washington
1998
1999
2000
Al
Financial and Business Statistics
A3
DOMESTIC FINANCIAL STATISTICS
Money Stock and Bank Credit
A4
A5
A6
Reserves, money stock, liquid assets, and debt
measures
Reserves of depository institutions and Reserve Bank
credit
Reserves and borrowings—Depository
institutions
Policy Instruments
A7
A8
A9
Federal Finance—Continued
GUIDE TO TABULAR PRESENTATION
Federal Reserve Bank interest rates
Reserve requirements of depository institutions
Federal Reserve open market transactions
Federal Reserve Banks
A10 Condition and Federal Reserve note statements
A l l Maturity distribution of loan and security
holding
All
Gross public debt of U.S. Treasury—
Types and ownership
A28 U.S. government securities
dealers—Transactions
A29 U.S. government securities dealers—
Positions and financing
A30 Federal and federally sponsored credit
agencies—Debt outstanding
Securities Markets and Corporate Finance
A31 New security issues—Tax-exempt state and local
governments and corporations
A32 Open-end investment companies—Net sales
and assets
A32 Corporate profits and their distribution
A32 Domestic finance companies—Assets and
liabilities
A33 Domestic finance companies—Owned and managed
receivables
Real Estate
Monetary and Credit Aggregates
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock, liquid assets, and debt measures
Commercial Banking Institutions—
Assets and Liabilities
A15
A16
A17
A19
A20
All commercial banks in the United States
Domestically chartered commercial banks
Large domestically chartered commercial banks
Small domestically chartered commercial banks
Foreign-related institutions
A34 Mortgage markets—New homes
A35 Mortgage debt outstanding
Consumer Credit
A36 Total outstanding
A36 Terms
Flow of Funds
A37
A39
A40
A41
Funds raised in U.S. credit markets
Summary of financial transactions
Summary of credit market debt outstanding
Summary of financial assets and liabilities
Financial Markets
A22 Commercial paper and bankers dollar
acceptances outstanding
A22 Prime rate charged by banks on short-term
business loans
A23 Interest rates—Money and capital markets
A24 Stock market—Selected statistics
Federal Finance
A25 Federal fiscal and financing operations
A26 U.S. budget receipts and outlays
A27 Federal debt subject to statutory limitation
DOMESTIC NONFINANCIAL STATISTICS
Selected
A42
A42
A43
A44
A46
A47
A48
A49
Measures
Nonfinancial business activity
Labor force, employment, and unemployment
Output, capacity, and capacity utilization
Industrial production—Indexes and gross value
Housing and construction
Consumer and producer prices
Gross domestic product and income
Personal income and saving
A2 Federal Reserve Bulletin • May 1998
INTERNATIONAL STATISTICS
Summary Statistics
A50
A51
A51
A51
U.S. international transactions
U.S. foreign trade
U.S. reserve assets
Foreign official assets held at Federal Reserve
Banks
A52 Selected U.S. liabilities to foreign official
institutions
Securities Holdings and Transactions
A60 Foreign transactions in securities
A61 Marketable U.S. Treasury bonds and
notes—Foreign transactions
Interest and Exchange Rates
A61 Discount rates of foreign central banks
A61 Foreign short-term interest rates
A62 Foreign exchange rates
Reported by Banks in the United States
A52
A53
A55
A56
Liabilities to, and claims on, foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A56 Banks' own claims on unaffiliated foreigners
A57 Claims on foreign countries—Combined
domestic offices and foreign branches
Reported by Nonbanking Business
Enterprises in the United States
A58 Liabilities to unaffiliated foreigners
A59 Claims on unaffiliated foreigners
A63 GUIDE TO STATISTICAL RELEASES AND
SPECIAL TABLES
SPECIAL TABLES
A64 Assets and liabilities of commercial banks,
December 31, 1997
A66 Terms of lending at commercial banks,
February, 1998
A70 Assets and liabilities of U.S. branches and agencies
of foreign banks, December 31, 1997
A74 INDEX TO STATISTICAL TABLES
A3
Guide to Tabular Presentation
SYMBOLS AND ABBREVIATIONS
c
e
n.a.
P
r
*
0
ATS
BIF
CD
CMO
FFB
FHA
FHLBB
FHLMC
FmHA
FNMA
FSLIC
G-7
Corrected
Estimated
Not available
Preliminary
Revised (Notation appears on column heading
when about half of the figures in that column
are changed.)
Amounts insignificant in terms of the last decimal
place shown in the table (for example, less than
500,000 when the smallest unit given is millions)
Calculated to be zero
Cell not applicable
Automatic transfer service
Bank insurance fund
Certificate of deposit
Collateralized mortgage obligation
Federal Financing Bank
Federal Housing Administration
Federal Home Loan Bank Board
Federal Home Loan Mortgage Corporation
Fanners Home Administration
Federal National Mortgage Association
Federal Savings and Loan Insurance Corporation
Group of Seven
G-10
GNMA
GDP
HUD
IMF
IO
IPCs
IRA
MMDA
MSA
NOW
OCD
OPEC
OTS
PO
REIT
REMIC
RP
RTC
SCO
SDR
SIC
VA
Group of Ten
Government National Mortgage Association
Gross domestic product
Department of Housing and Urban
Development
International Monetary Fund
Interest only
Individuals, partnerships, and corporations
Individual retirement account
Money market deposit account
Metropolitan statistical area
Negotiable order of withdrawal
Other checkable deposit
Organization of Petroleum Exporting Countries
Office of Thrift Supervision
Principal only
Real estate investment trust
Real estate mortgage investment conduit
Repurchase agreement
Resolution Trust Corporation
Securitized credit obligation
Special drawing right
Standard Industrial Classification
Department of Veterans Affairs
GENERAL INFORMATION
In many of the tables, components do not sum to totals because of
rounding.
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed issues
of U.S. government agencies (the flow of funds figures also
include not fully guaranteed issues) as well as direct obligations of the Treasury.
"State and local government" also includes municipalities,
special districts, and other political subdivisions.
A4
Domestic Financial Statistics • May 1998
1.10
RESERVES, MONEY STOCK. LIQUID ASSETS, AND DEBT MEASURES
Percent annual rate of change, seasonally adjusted1
1998
Monetary or credit aggregate
1
2
3
4
Reserves of depository institutions
Total
.'
Required
Nonborrowed
Monetary base1
Concepts of money, liquid assets, and debt*
5 Ml
'
6 M2
7 M3
IL
Ql
Q2
Q3
Q4
Oct.
-8.3
-8.4
-7.2
5.3
-14.3
-15.0
-16.0
3.7
-1.8
-2.4
-3.4
6.3
-1.3
-4.1
.7
-5.5
-8.3
-1.2
8.1
Jan.'
6.8
10.6
5.1
13.7
10.9
8.5
7.0
4.1
9.9
21.2
24.5
18.4
5.8
-14.2
-7.7
-10.3
3.5
-1.9
5.9
8.5
1.(1
6.0'
8.2
7.3
11.7'
13.2'
6.5'
7.6
6.8
11.2'
12.1'
6.2'
-3.0
72
10.7
13.6
5.9
2.8
9.3
8.5
n.a.
n.a.
-1.4
5.1
8.0
7.0
4.4r
-4.5
4.4
7.7
8.4
5.0'
.3
5.4
7.1
4.2'
6.8
9.9'
9.5'
5.8'
7.7
18.0
7.9
18.9
7.3
16.9
9.0
19.6'
8.7'
16.9'
7.0
25.4'
6.5
24.9'
10.9
21.2
11.6
6.2
12.8
2.9
19.4
11.0
5.6
24.1
9.6'
7.1
17.2
16.3
3.1
14.0
17.3'
2.5
6.6
11.9
5.6
22.6
13.6
1.0
19.9
14.3
.2
8.7
29^8
.7
.0
13.5
6.0
-2.9
4.3
1.0
-5.2
9.8
1.3
-3.5'
5.3
2.2
-1.0
1.4
-.6
-9.0 1
11.5
5.1
.0'
11.4
6.7
4.2
29.6
13.3
-2.8
2.7
Money market mutual funds
18 Retail
19 Institution-only
14.7
18.4
13.5
18.0
16.0
19.7
15.6
22.0
10.2
22.9
14.4
7.6
4.8
34.5
22.9
14.7
28.0
12.3
Repurchase agreements and Eurodollars
20 Repurchase agreements''
21 Eurodollars'"
6.2
35.8
6.8
32.2
13.4
19.5
38.3'
12.4'
55 1'
-9.6'
77.9'
6.1'
9.3'
51.5'
52.6
25.1
-25.9
-34.4
.6
5.9'
.9
7.4'
.5
7.8'
2.2
7.6'
.0
7.9
n.a.
n.a.
9 Debt
Nonlransaction components
10 In M25
11 In M3 only6
Time and savings deposits
Commercial banks
Savings, including MMDAs...
Smalltime 7
Large time8'9
Thrift institutions
15 Savings, including MMDAs. . .
16 Small time7
17 Large time8
12
13
14
Debt componentsi
22 Federal
23 Nonfederal
1.8
5.4'
1. Unless otherwise noted, rates of change are calculated from average amounts outstanding during preceding month or quarter.
2. Figures incorporate adjustments for discontinuities, or "breaks," associated with
regulatory changes in reserve requirements. (See also table 1,20,)
3. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally
adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency
component of the money stock, plus (3) (for all quarterly reporters on the "Report of
Transaction Accounts, Other Deposits and Vault Cash" and for all weekly reporters whose
vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted difference
between current vault cash and the amount applied to satisfy current reserve requirements.
4. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of
depository institutions, (2) travelers checks of nonbank issuers. (3.) demand deposits at all
commercial banks other than those owed to depository institutions, the U.S. government, and
foreign banks and official institutions, less cash items in the process of collection and Federal
Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of
withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions.
credit union share draft accounts, and demand deposits at thrift institutions. Seasonally
adjusted Ml is computed by summing currency, travelers checks, demand deposits, and
OCDs, each seasonally adjusted separately.
M2: Ml plus (1) savings (including MMDAsj. (2) small-denomination time deposits (time
deposits—including retail RPs—in amounts of less than $100,000), and (3) balances in retail
money market mutual funds (money funds with minimum initial investments of less than
$50,000). Excludes individual retirement accounts (IRAs) and Keogh balances at depository
institutions and money market funds. Seasonally adjusted M2 is calculated by summing
savings deposits, small-denomination time deposits, and retail money fund balances, each
seasonally adjusted separately, and adding this result to seasonally adjusted Ml.
M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more), (2)
balances in institutional money funds (money funds with minimum initial investments of
$50,000 or more), (3) RP liabilities (overnight and term) issued by all depository institutions,
and (4) Eurodollars (overnight and term) held by U.S. residents at foreign branches of U.S.
banks worldwide and at all banking offices in the United Kingdom and Canada, Excludes
.4
6.6'
13.1
amounts held by depository institutions, the U.S. government, money market funds, and
foreign banks and official institutions. Seasonally adjusted M3 is calculated by summing large
time deposits, institutional money fund balances, RP liabilities, and Eurodollars, each
seasonally adjusted separately, and adding this result to seasonally adjusted M2.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term Treasury
securities, commercial paper, and bankers acceptances, net of money market fund holdings of
these assets. Seasonally adjusted L is computed by summing U.S. savings bonds, short-term
Treasury securities, commercial paper, and bankers acceptances, each seasonally adjusted
separately, and then adding this result to M3.
Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial
sectors—the federal sector (U.S. government, not including government-sponsored enterprises or federally related mortgage pools) and the nonfederal sectors (state and local
governments, households and nonprofit organizations, nonfinancial corporate and nonfarm
noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and
corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data,
which are derived from the Federal Reserve Board's flow of funds accounts, are breakadjusted (that is, discontinuities in the data have been smoothed into the series) and
month-averaged (that is, the data have been derived by averaging adjacent month-end levels).
5. Sum of (1) savings deposits (including MMDAs), (2) small time deponiK, and O) retail
money fund balances, each seasonally adjusted separately.
6. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities
(overnight and term) issued by depository institutions, and (4) Eurodollars (overnight and
term) of U.S. addressees, each seasonally adjusted separately.
7. Small time deposits—including retail RPs—are those issued in amounts of less than
$100,000. All IRA and Keogh account balances at commercial banks and thrift institutions
are subtracted from small time deposits.
8. Large time deposits are those issued in amounts of $100,000 or more, excluding those
booked at international banking facilities.
9. Large time deposits at commercial banks less those held by money market funds,
depository institutions, the U.S. government, and foreign banks and official institutions.
10. Includes both overnight and term.
Money Stock and Bank Credit A5
1.11
RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT'
Millions of dollars
Average of
daily figures
Average of daily figures for week ending on date indicated
1998
1998
Feb.
Jan. 14
Jan. 21
Jan. 28
Feb. 4
Feb. 11
Feb. 18
Feb. 25
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit outstanding
U.S. government securities
2
Bought outright—System account3
3
Held under repurchase agreements
Federal agency obligations
4
Bought outright
5
Held under repurchase agreements
6
Acceptances
Loans to depository institutions
7
Adjustment credit
8
Seasonal credit
9
Extended credit
10 Float
11 Other Federal Reserve assets
....
12 Gold stock
13 Special drawing rights certificate account . . . .
14 Treasury currency outstanding
469,563
468,720'
463,965
468,283
466,439'
465,383'
463,079
461,269
464,620
466,130
427,860
7,197
429,845
4,155
427,988
2,720
430,981
3,433
429,718
1,920
428,462
2,896
427,804
739
427,093
274
428,138
2,799
428,618
5,743
685
685
833
0
678
573
0
685
826
0
685
403
0
685
422
0
685
743
0
682
163
0
675
1,156
0
617
0
675
442
0
252
79
0
931
31,404
188
18
0
1,228'
31,769
51
II
0
440
31,505
22
20
0
690
31,626
364
16
0
1,792'
31,543
87
16
0
587'
32,228
91
9
0
949
32,060
25
9
0
937
32,087
78
12
0
368
31,934
15
13
0
134
30,489
11,049
9,200
25,602
11,046
9,200
25,644
11,047
9,200
25,703
11,046
9,200
25,634
11,046
9,200
25,648
11,044
9,200
25,662
11,046
9,200
25,676
11,046
9,200
25,690
11,047
9,200
25,704
25,718
475,661
230
474,085
224
471,834
227
475,243
228
472,553
227
470,160
219
469,301
221
470,576
223
473,053
227
472,853
229
5,107
177
6,922
354
16,025
10,938
6,507
188
7,198
421
16,016
9,971'
4,969
178
7,067
395
16,114
9,131
5,253
177
7,007
252
16,240
9,762
9,148
161
7,377
329
16,127
6,411'
6,976
166
7,584
343
16.083
9.759'
5,696
200
7,276
374
15,932
10,000
5,062
163
7,117
422
16,140
7.501
4,969
164
7,030
404
16,154
8,571
4,400
172
6,953
371
16.139
10,979
11,049
9.200
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19 Service-related balances and adjustments . .
20 Other
21 Other Federal Reserve liabilities and capital .
22 Reserve balances with Federal Reserve Banks
End-of-month figures
Wednesday figures
Jan. 28
Feb. 4
Feb. 11
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit outstanding
U.S. government securities2
2
Bought outright—System account3
3
Held under repurchase agreements
Federal agency obligations
4
Bought outright
5
Held under repurchase agreements
6
Acceptances
Loans to depository institutions
7
Adjustment credit
8
Seasonal credit
9
Extended credit
10 Float
11 Other Federal Reserve assets
12 Gold stock
13 Special drawing rights certificate account
14 Treasury currency outstanding
490,034
463,567'
465,614
472,252
472,863'
473,654'
461,785
466,801
467,625
476,128
430,736
21,188
428,043
800
428,619
3,645
431,714
5,465
429,553
6,271
427.975
8,978
427,516
0
429.481
1,915
428,001
4,302
429,189
12,080
685
2,652
0
685
1,268
0
675
2,107
0
685
2,216
0
685
1,356
0
685
760
0
685
0
0
675
1,140
0
675
1,070
0
1,610
0
2,001
35
0
719
32,020
0
671'
32,077'
0
12
0
-202
30,757
20
20
0
-245
32,377
367
15
0
2,446'
32,171
14
13
0
2,215'
33,014
305
6
0
1,404
31,869
2
14
0
1.053
32,522
3
12
0
3,379
30,184
4
13
0
1,116
31,442
11,047
9,200
25,606
11.046
9,200
25,676
11,050
9,200
25,732
11,046
9,200
25,634
11,046
9,200
25,648
11,044
9,200
25,662
11,045
9,200
25,676
11.047
9,200
25,690
11,048
9,200
25,704
11,050
9,200
25,718
482,390
225
468,337
220
472,029
241
473,960
229
472,384
219
470,034
220
470,813
222
472,372
227
474,118
227
473,257
241
5,444
457
6,954
900
15,500
24,017
5.552
215
5,037
243
7,029
349
16,256
10,410
4,644
15,430
161
7,377
330
15,929
6,926'
6,846
4,792
164
7,276
411
4,401
152
7,117
402
15,972
12,095
4,699
170
7,030
405
15,933
10,995
4,398
675
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18
Foreign
19 Service-related balances and adjustments . ..
20
Other
21 Other Federal Reserve liabilities and capital . .
22 Reserve balances with Federal Reserve Banks
7,276'
343
15,969
11,576'
1. Amounts of cash held as reserves are shown in table 1.12, line 2.
2. Includes securities loaned—fully guaranteed by U.S. government securities pledged
with Federal Reserve Banks—and excludes securities sold and scheduled to be bought back
under matched sale-purchase transactions.
157
7,007
337
15,971
15,826
158
7,584
334
15,853
18,531'
15,605
8,422
194
6,953
374
15,931
20,749
3. Includes compensation that adjusts for the effects of inflation on the principal of
inflation-indexed securities.
4. Excludes required clearing balances and adjustments to compensate for float.
A6
Domestic Financial Statistics • May 1998
1.12
RESERVES AND BORROWINGS
Millions of dollars
Depository Institutions'
Prorated monthly averages of biweekly averages
Reserve classification
1
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks2
Total vault cash3
Applied vault cash4
Surplus vault cash5
Total reserves6
Required reserves
Excess reserve balances at Reserve Banks7
Total borrowings at Reserve Banks8
Seasonal borrowings
Extended credit9
1995
1996
1997
1997
1998
Dec.
Dec.
Dec.
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.'
Feb.
20.440
42,094
37,460
4,634
57,900
56,622
1,278
257
40
0
13,395
44,379
37,848
6,532
51,243
49,819
1,424
155
68
0
10.673
43.970
37.206
6.763
47,880
46,196
1,683
324
79
0
10,489
42,379
36,156
6,224
46.645
45,392
1,253
598
385
0
9,742
43,056
36,314
6,742
46,056
44,761
1,295
438
368
0
9.990
41,730
35,631
6,099
45,621
44,225
1,396
270
227
0
10,559
42,114
35.892
6,222
46,451
44,834
1,617
153
115
0
10,673
43,970
37,206
6,763
47,880
46,196
1,683
324
79
0
9,733
46,672
37.762
8,910
47,495
45,714
1,780
210
18
0
9,390
42,562
35,580
6,981
44,970
43,452
1,518
58
12
0
Feb. 1 l r
Feb. 25
Mar. 11
8.750
44,560
36,462
8.098
45,212
43,648
1,563
67
9
0
9,726
41,199
34,892
6,307
44,618
43,132
1.485
59
13
0
10,175
41.597
35,558
6,039
45,733
44,229
1,504
19
17
0
Biweekly averages of daily figures for two week periods ending Qn dates indicated
1998
1997
1
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks"
Total vault cash
Applied vault cash4
Surplus vault cash
Total reserves6
Required reserves
Excess reserve balances at Reserve Banks7
Total borrowings at Reserve Banks
Seasonal borrowings
Extended credit'
Nov. 5
Nov. 19
Dec. 3
Dec. 17
Dec. 31
Jan. 14
Jan. 28
10,451
41,941
35,718
6,224
46,168
44,507
1,661
238
167
0
10,234
42,129
35,817
6,312
46,051
44,540
1,510
149
112
0
11,022
42,175
36,068
6,108
47.090
45.357
1,733
119
95
0
9,678
44,267
36,965
7,302
46,643
45,170
1,473
240
85
0
11,595
44,058
37,692
6.366
49,286
47,403
1,883
454
71
0
11,500
44.958
37,976
6,982
49,476
47,659
1,817
209
22
0
8,176
48,839
37.827
11,012
46,003
44,213
1,790
242
16
0
1. Data in this table also appear in the Board's H.3 (502) weekly statistical release. For
ordering address, see inside front cover. Data are not break-adjusted or seasonally adjusted.
2. Excludes required clearing balances and adjustments to compensate for float and
includes other off-balance-sheet "as-of' adjustments.
3. Total "lagged" vault cash held by depository institutions subject to reserve
requirements. Dates refer to the maintenance periods during which the vault cash may be used
to satisfy reserve requirements. The maintenance period for weekly reporters ends sixteen
days after the lagged computation period during which the vault cash is held. Before Nov. 25,
1992, the maintenance period ended thirty days after the lagged computation period.
4. All vault cash held during the lagged computation period by "bound" institutions (that
is, those whose required reserves exceed their vault cash) plus the amount of vault cash
applied dunng the maintenance period by "nonbound" institutions (that is, those whose vault
cash exceeds their required reserves) to satisfy current reserve requirements.
r
5. Total vault cash (line 2) less applied vault cash (line 3).
6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash
(line 3).
7. Total reserves (line 5) less required reserves (line 6).
8. Also includes adjustment credit.
9- Consists of borrowing at the discount window under the terms and conditions established for the extended credit program to help depository institutions deal with sustained
liquidity pressures. Because there is not the same need to repay such borrowing promptly as
widi traditional short-term adjustment credit, the money market effect of extended credit is
similar to mat of nonborrowed reserves.
Policy Instruments A7
1.14 FEDERAL RESERVE BANK INTEREST RATES
Percent per year
Current and previous levels
Adjustment credit
Federal Reserve
Bank
1
Seasonal credit
On
4/3/98
Extended credit
On
4/3/98
Boston . . . .
New York. . . .
Philadelphia . .
Cleveland.. .
Richmond.. ..
Atlanta
2/1/96
1/31/96
1/31/96
1/31/96
2/1/96
1/31/96
Chicago
St. Louis
Minneapolis . .
Kansas City . .
Dallas
San Francisco.
2/1/96
2/5/96
1/31/96
2/1/96
1/31/96
1/31/96
5.50
5.25
5.50
On
4/3/98
Effective date
6.00
3/26/98
5.55
Previous rate
3/26/98
Range of rates for adjustment credit in recent years4
Effective date
Range (or
level)—All
F.R. Banks
F.R. Bank
of
N.Y.
6-6.5
6.5
6.5-7
7
7-7.25
7.25
7.75
8
8-8.5
8.5
8.5-9.5
9.5
6.5
6.5
7
7
7.25
7.25
7.75
8
8.5
8.5
9.5
9.5
In effect Dec. 31, 1977
1978—Jan.
May
July
Aug.
Sept.
9
20
11
12
3
10
21
22
Oct. 16
20
Nov.
1
3
1979—July 20
Aug. 17
20
Sept. 19
Oct.
21
8
10
1980—Feb. 15
19
May 29
30
June 13
16
July 28
29
Sept. 26
Nov. 17
Dec. 5
8
1981—May 5
10
10-10.5
10.5
10.5-11
II
11-12
12
12-13
13
12-13
12
11-12
11
10-11
10
II
12
12-13
13
13-14
14
10
10.5
10.5
11
11
12
12
13
13
13
12
11
11
10
10
11
12
13
13
14
14
Effective date
F.R. Bank
of
N.Y.
1981—Nov. 2
6
Dec. 4
13-14
13
1982—July 20
23
Aug. 2
11.5-12
11.5
11-11.5
11
10.5
10-10.5
10
9.5-10
9.5
9-9.5
9
8.5-9
8.5-9
8.5
11.5
11.5
8.5-9
9
8.5-9
8.5
9
9
8.5
8.5
8
16 .
27
30
Oct. 12
13
Nov. 22
26
Dec. 14
15
17
1984—Apr.
9
13
Nov. 21
26
Dec. 24
12
13
13
12
9
9
8.5
8.5
7.5-8
7.5
7.5
7.5
1986—Mar. 7
10
Apr. 21
23
July 11
7-7.5
7
6.5-7
6.5
6
5.5-6
5.5
7
7
6.5
6.5
5.5-6
6
6
6
A
! !
Range (or
level)—All
F.R. Banks
6
5.5
5.5
F.R. Bank
of
N.Y.
1988—Aug. 9 .
6-6.5
6.5
6.5
6.5
1989—Feb. 24
6.5-7
7
7
7
27
1990—Dec. 19
10.5
10
10
9.5
9.5
9
1985—May 20
24
1991—Feb.
1
4 ....
Apr. 30
May 2
Sep't. 13 . . . .
17
Nov.
6
7
Dec. 20
24
1992—July 2
7
1994—May 17
Aug. 16
18
Nov. 15
17
1995—Feb.
1
9
1996—Jan. 31 . . . .
Feb. 5
6.5
6.5
6-6.5
6
6
5.5
5.5
5
5
4.5
4.5
3.5
3.5
6
5.5-6
5.5
5-5.5
5
4.5-5
4.5
3.5-4.5
3.5
3-3.5
3
3
3
3-3.5
3.5
3.5^1
4
4-4.75
4.75
3.5
3.5
4
4
4.75
4.75
4.75-5.25
5.25
5.25
5.25
5.00-5.25
5.00
5.00
5.00
In effect Apr. 3, 1998
1987—Sept. 4
11
1. Available on a short-term basis to help depository institutions meet temporary needs for
funds that cannot be met through reasonable alternative sources. The highest rate established
for loans to depository institutions may be charged on adjustment credit loans of unusual size
that result from a major operating problem at the borrower's facility.
2. Available to help relatively small depository institutions meet regular seasonal needs for
funds that arise from a clear pattern of inlrayearly movements in their deposits and loans and
that cannot be met through special industry lenders. The discount rate on seasonal credit takes
into account rates charged by market sources of funds and ordinarily is reestablished on the
first business day of each two-week reserve maintenance period; however, it is never less than
the discount rate applicable to adjustment credit.
3. May be made available to depository institutions when similar assistance is not
reasonably available from other sources, including special industry lenders. Such credit may
be provided when exceptional circumstances (including sustained deposit drains, impaired
access to money market funds, or sudden deterioration in loan repayment performance) or
practices involve only a particular institution, or to meet the needs of institutions experiencing
difficulties adjusting to changing market conditions over a longer period (particularly at times
of deposit disintermedialion). The discount rate applicable to adjustment credit ordinarily is
charged on extended-credit loans outstanding less than thirty days; however, at the discretion
Range (or
level)—All
F.R. Banks
of the Federal Reserve Bank, this time period may be shortened. Beyond this initial period, a
flexible rate somewhat above rates charged on market sources of funds is charged. The rate
ordinarily is reestablished on the first business day of each two-week reserve maintenance
period, but it is never less than the discount rate applicable to adjustment credit plus 50 basis
points.
4. For earlier data, see the following publications of the Board of Governors: Banking and
Monetary Statistics. 1914-1941, and 1941-1970, and the Annual Statistical Digest, 19701979
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term adjustment-credit
borrowings by institutions with deposits of $500 million or more that had borrowed in
successive weeks or in more than four weeks in a calendar quarter. A 3 percent surcharge was
in effect from Mar. 17. 1980, through May 7, 1980. A surcharge of 2 percent was reimposed
on Nov. 17, 1980; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and to
4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective Sept. 22, 1981,
and to 2 percent effective Oct. 12. 1981. As of Oct. 1, 1981, the formula for applying the
surcharge was changed from a calendar quarter to a moving thirteen-week period. The
surcharge was eliminated on Nov 17, 1981.
A8
Domestic Financial Statistics • May 1998
1.15
RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1
Requirement
Type of deposit
Percentage of
deposits
Net transaction accounts^
1 $0 raiUion-$47.8 million3
2 More than $47.8 million4
Effective date
3
10
1/1/98
1/1/98
3
Nonpersonal time deposits5
0
12/27/90
4
Eurocurrency liabilities6
0
12/27/90
1. Required reserves must be held in the form of deposits with Federal Reserve Banks
or vault cash. Nonmember institutions may maintain reserve balances with a Federal
Reserve Bank indirectly, on a pass-through basis, with certain approved institutions. For
previous reserve requirements, see earlier editions of the Annual Report or the Federal
Reserve Bulletin. Under the Monetary Control Act of 1980, depository institutions
include commercial banks, mutual savings banks, savings and loan associations, credit
unions, agencies and branches of foreign banks, and Edge Act corporations.
2. Transaction accounts include all deposits against which the account holder is permitted
to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, or telephone or preauthorized transfers for the purpose of making payments to third
persons or others. However, accounts subject to the rules that permit no more than six
preauthorized, automatic, or other transfers per month (of which no more than three may be
by check, draft, debit card, or similar order payable directly to third parties) are savings
deposits, not transaction accounts.
3. The Monetary Control Act of 1980 requires that the amount of transaction accounts
against which the 3 percent reserve requirement applies be modified annually by 80 percent of
the percentage change in transaction accounts held by all depository institutions, determined
as of June 30 of each year. Effective with the reserve maintenance period beginning January 1,
1998, for depository institutions that report weekly, and with the period beginning January 15,
1998, for institutions that report quarterly, the amount was decreased from $49.3 million to
$47.8 million.
Under the Garn-St Germain Depository Institutions Act of 1982, the Board adjusts the
amount of reservable liabilities subject to a zero percent reserve requirement each year for the
succeeding calendar year by 80 percent of the percentage increase in the total reservable
liabilities of all depository institutions, measured on an annual basis as of June 30. No
corresponding adjustment is made in the event of a decrease. The exemption applies only to
accounts that would be subject to a 3 percent reserve requirement. Effective with the reserve
maintenance period beginning January 1, 1998, for depository institutions that report weekly,
and with the period beginning January 15, 1998, for institutions that report quarterly, the
exemption was raised from $4.4 million to $4.7 million.
4. The reserve requirement was reduced from 12 percent to 10 percent on
Apr. 2, 1992. for institutions that report weekly, and on Apr. 16, 1992, for institutions that
report quarterly.
5. For institutions that report weekly, the reserve requirement on nonpersonal time deposits
with an original maturity of less than 1 Vi years was reduced from 3 percent to 1'/> percent for
the maintenance period thai began Dec. 13, 1990, and to zero for the maintenance period that
began Dec. 27, 1990. For institutions that report quarterly, the reserve requirement on
nonpersonal time deposits with an original maturity of less than 11/2 years was reduced from 3
percent to zero on Jan. 17, 1991.
The reserve requirement on nonpersonal time deposits with an original maturity of \l/i
years or more has been zero since Oct. 6, 1983.
6. The reserve requirement on Eurocurrency liabilities was reduced from 3 percent to zero
in the same mannei and on the same dates as the reserve requirement on nonpersona) time
deposits with an original maturity of less than 1 V^ years (see note 5).
Policy Instruments A9
1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1
Millions of dollars
Type of transaction
and maturity
1997
July
Aug.
Sept.
Oct.
Nov.
Jan.
U.S. TREASURY SECURITIES 2
1
2
3
4
5
6
7
8
9
10
11
12
Outright transactions (excluding matched
transactions)
Treasury bills
Gross purchases
Gross sales
Exchanges
For new bills
Redemptions
Others within one year
Gross purchases
Gross sales
Maturity shifts
Exchanges
Redemptions
One to five years
Gross ppurchases.
Gross sales
Maturity shifts
Exchanges
Five to ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
More than len years
Gross purchases
Gross sales
Maturity shifts
Exchanges
All maturities
Gross purchases
Gross sales
Redemptions
Matched transactions
26 Gross purchases
27 Gross sales
Repurchase agreements
28 Gross purchases
29 Gross sales
30 Net change in U.S. Treasury securities
10,932
0
405,296
405,296
900
9,901
0
426,928
426.928
0
9,147
0
419,347
418,997
0
0
0
35,948
35,948
0
0
0
35,666
35,666
0
0
0
28,328
28,328
0
0
0
39,313
39,313
0
0
0
33,485
33,485
0
4,545
0
26,905
26,905
0
0
0
41,731
41,731
2.000
390
0
43.574
-35,407
1,776
524
0
30,512
-41,394
2,015
5,748
0
43,473
-27,499
0
0
0
4,359
-1,087
598
0
0
7,487
-2,780
0
644
0
1,596
-2,382
• 0
0
0
3,193
-1,267
416
1,462
0
5.231
-4,126
0
1,947
0
1,748
-2,329
0
0
0
3,447
-400
478
5,366
0
-34.646
26,387
3,898
0
-25,022
31,459
20,299
0
-39,744
20,274
0
0
-4,359
1,087
0
0
-5,247
1,170
2,697
0
-1,596
2,382
0
0
-3,193
1,267
3.323
0
-4,883
1,651
4,471
0
-1,748
2,329
0
0
-3,447
0
1,432
0
-3,093
7,220
1,116
0
-5,469
6,666
3,101
0
-1,954
5,215
0
0
0
0
0
0
-2,240
0
0
0
0
770
0
0
0
485
0
31
1.295
613
0
0
0
0
0
0
400
2,529
0
-2,253
1,800
1,655
0
-20
3,270
5,827
0
-1,775
2,360
0
0
0
0
0
0
0
730
0
0
0
0
648
0
0
0
954
0
-379
1,180
1,214
0
0
0
0
0
0
0
20,649
0
2,676
17,094
0
2,015
44,122
0
1,996
0
0
598
0
0
0
3,341
0
0
1.418
0
416
6,224
0
0
12,790
0
0
0
0
2,478
2,197,736
2,202,030
3.092,399
3,094.769
3,586,584
3,588.905
307,101
309,578
317,008
315,439
311,153
312.083
316,425
318,485
272,474
269,586
353,726
355,668
332.581
332,795
331,694
328,497
457,568
450.359
810.485
809,268
44,087
53,217
54,561
50,340
77,109
74,960
75,323
78,157
73,618
73,064
97,932
87,160
45,543
65,932
41,022
-12,205
4,560
-3,893
9,666
21,620
-23,080
23,054
20,976
20,056
21,186
13,107
13,232
16.875
FEDERAL AGENCY OBLIGATIONS
Outright transactions
31 Gross purchases
32 Gross sales
33 Redemptions
Repurchase agreements
34 Gross purchases
35 Gross sales
36 Net change in federal agency obligations
37 Total net change in System Open Market Account.
0
0
1,003
0
0
409
0
0
1,540
0
0
287
0
0
179
0
0
105
0
0
215
36,851
36,776
75,354
74,842
160,409
159,369
10,437
10,811
13,131
11,252
9,796
11,196
15,639
15,157
-928
103
-500
-661
1,700
-1,505
267
2,052
-1,130
-125
15,948
20,021
40,522
-12,866
7,490
3,055
-3,626
11,718
20,490
-23,204
1. Sales, redemptions, and negative figures reduce holdings of the System Open Market
Account; all other figures increase such holdings.
2. Transactions exclude changes in compensation for the effects of inflation on the principal
of inflation-indexed securities.
A10 Domestic Financial Statistics • May 1998
1.18
FEDERAL RESERVE BANKS
Condition and Federal Reserve Note Statements'
Millions of dollars
End of month
Wednesday
Account
Jan. 28
Feb. 4
Feb. 11
Feb. 18
Feb. 25
Dec. 31
Jan. 31
Feb. 28
Consolidated condition stalement
1 Gold certificate account
2 Special drawing rights certificate account .
3 Coin
Loans
4 To depository institutions
5 Other
6 Acceptances held under repurchase agreements
Federal agency obligations
7 Bought outright
8 Held under repurchase agreements
11,044
9,200
532
11,045
9,200
560
11,047
9,200
578
11,048
9,200
580
11,050
9,200
569
11.047
9,200
460
11,046
9,200
556
11,050
9,200
27
0
0
311
0
0
16
0
0
15
0
0
17
0
0
2,035
0
0
24
0
0
13
0
0
685
760
685
0
675
1,140
675
1,070
675
1,610
685
2,652
685
1,268
675
2,107
436,953
427,516
431,396
432,303
441,269
451,924
428,843
432.264
10 Bought outright
11 Bills
12 Notes
13 Bonds
14 Held under repurchase agreements . .
427,975
194,841
173,727
59,407
8,978
427,516
194,382
173,727
59,407
0
429,481
196.348
173,726
59,407
1,915
428,001
194,869
172,401
60,732
4,302
429,189
196,057
172,400
60,732
12,080
430,736
197.123
174,206
59,407
21,188
428,043
194,909
173.727
59.407
800
428,619
195,488
172,400
60,732
3,645
15 Total loans and securities
438,425
428,512
433,226
434,063
443,571
457,295
430,820
435,058
8,180
1,274
8,235
1,274
8,000
1,277
14.170
1,277
7,199
1,276
7,800
1,272
5,185
1,273
4,488
1,275
17,076
15,084
17,025
13,523
17.033
14,142
17,041
11,742
17,048
13,006
17,046
13.726
17.019
13,693
17,203
12,327
500,816
489,374
494,502
499,119
502,918
517,847
488,792
491,188
445,125
445,920
447,487
449,221
448,349
457,469
443,438
447,126
24,937
23,155
9 Total U.S. Treasury securities
16 Items in process of collection. . .
17 Bank premises
Other assets
18 Denominated in foreign currencies* .
19 Allofher'
20 Total asset?
LIABILITIES
21 Federal Reserve notes
22 Total deposits
33,767
20,985
24,700
24,226
32,440
37,639
23
24
25
26
Depositary institutions
U.S. Treasury—General account..
Foreign—Official accounts
Other
26,426
6,846
158
334
15,618
4,792
164
411
19,746
4,401
152
402
18,951
4,699
170
405
27,475
4,398
194
374
30,838
5,444
457
900
18,826
5,552
215
343
17,525
5,037
243
349
27 Deferred credit items
28 Other liabilities and accrued dividends
6,071
4,635
6,864
4,476
6,343
4,759
9,740
4,715
6,198
4,716
7.239
4,846
4.449
4,635
4,652
4,696
489,598
478,244
483,289
487,902
491,704
507,193
477,458
479,628
5,476
5,220
522
5,478
5,220
431
5,472
5,220
521
5,474
5,220
524
5,478
5,220
517
5.433
5.220
0
5,477
5,220
636
5,478
5,220
861
500,816
489,374
494,502
499,119
502,918
517,847
488.792
491,188
605,315
602,478
600,485
606,710
606,419
602,834
607,873
605,360
29 Total liabilities .
CAPITAL ACCOUNTS
30 Capita! paid in
31 Surplus
32 Other capital accounts..
33 Total liabilities and capital accounts
MEMO
34 Marketable U.S. Treasury securities held in custody for
foreign and international accounts
Federal Reserve note statement
35 Federal Reserve notes outstanding (issued to Banks) .
36 LESS: Held by Federal Reserve Banks
37
Federal Reserve notes, net
38
39
40
41
Collateral held against notes, net
Gold certificate account
Special drawing rights certificate account
Other eligible assets
U.S. Treasury and agency securities
42 Total collateral
548,150
103,025
445,125
547,757
101,837
445,920
548,318
100,831
447,487
549,015
99,794
449,221
548,745
100,395
448,349
549,600
92,131
457,469
547,998
104,561
443,438
549,260
102,133
447,126
11,044
9,200
0
424,881
11,045
9,200
0
425,674
11,047
9,200
0
427,240
11,048
9,200
0
428.974
11,050
9,200
0
428,099
11,047
9,200
0
437.222
11,046
9,200
0
423,192
11,050
9,200
0
426,876
445,125
445,920
447,487
449.221
448,349
457,469
443,438
447,126
1. Some of the data in this table also appear in the Board's H.4.1 (503) weekly statistical
release. For ordering address, see inside front cover.
2. Includes securities loaned—fully guaranteed by U.S. Treasury securities pledged with
Federal Reserve Banks—and includes compensation that adjusts for the effects of inflation on
the principal of inflation-indexed securities. Excludes securities sold and scheduled to be
bought back under matched sale-purchase transactions.
3. Valued monthly at market exchange rates.
4. Includes special investment account at the Federal Reserve Bank of Chicago in Treasury
bills maturing within ninety days.
5. Includes exchange-translation account reflecting the monthly revaluation at market
exchange rates of foreign exchange commitments.
Federal Reserve Banks A l l
1.19
FEDERAL RESERVE BANKS
Maturity Distribution of Loan and Security Holding
Millions of dollars
Wednesday
End of month
Type of holding and maturity
Jan. 28
Feb. 18
Feb. 25
Dec. 31
Jan. 31
1 Total loans
27
311
24
62
2 Within fifteen days1
25
2
307
4
5
11
10
5
12
5
734
3
21
2
56
6
436,953
427,516
431,396
432,303
441,269
451,924
428,843
432.264
21,566
92,750
138.887
94,136
41,306
48,308
18,670
92,094
132,653
94,484
41,306
48.308
13,830
94,304
139,163
94,484
41,306
48.308
17,291
92,274
138,959
94,305
39,841
49,633
26,410
91,811
139,269
94,305
39.841
49,633
34,147
95,648
137,886
95,028
40,906
47,094
9,133
104,808
131,151
94,136
41,306
48.308
12,674
103,213
132,599
94,305
39,841
49,633
1,445
685
1,815
1,745
2,285
3337
1,953
2,782
770
94
150
151
255
25
10
94
150
151
255
25
1,140
94
150
151
255
25
1,070
94
150
151
255
25
1,660
44
150
151
255
25
2,652
60
192
153
55
25
1,278
94
150
151
255
25
2,157
44
150
151
255
25
3. Sixteen days to ninety days
4 Total US. Treasury securities2
5
6
7
8
9
10
11
Within fifteen days'
Sixteen days to ninety days
Ninety-one days to one year
One year to five years
Five years to ten years
More than ten years
Total federal agency obligations
12
13
14
15
16
17
Within fifteen days1
Sixteen days to ninety days
Ninety-one days to one year
One year to five years
Five years to ten years
More than ten years
1. Holdings under repurchase agreements are classified as maturing within fifteen days in
accordance with maximum maturity of the agreements.
2. Includes compensation that
inflation-indexed securities.
ljusts for the effects of inflation on the principal of
A12
1.20
Domestic Financial Statistics • May 1998
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1
Billions of dollars, averages of daily figures
1997
1994
Dec.
1995
Dec.
1996
Dec.
July
5 Monetary base 6
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
46.45
46.18
46.18
45 06
472.35
46.87
46.71
46.71
45 25
476.64
47.20
46 87
46.87
45 51
480.58
46.36'
46.15'
46.15'
44.58'
482.91'
45.82
45.76
45.76
44.30
484.32
Seasonally adjusted
ADJUSTED FOR
C H A N G E S IN R E S E R V E R E Q U I R E M E N T S -
2 Nonborrowed reserves 4
3 Nonbonowed reserves plus extended credit 3
1998
1997
Dec.
59.40
59.20
59.20
58 24
418.18
56.39
56.13
56.13
55 11
434.23
50 06
49.91
49.91
48.64
452.47
47.20
46.87
46.87
45 51
480.58
46.89
46.48
46.48
45.68
464.46
47 41
46.82
46.82
46 16
467.02
46.67
46.23
46.23
45.37
469.68
Not seasonally adjusted
8 Nonborrowed reserves plus extended credit 5
9 Required reserves"
61.13
60.92
60.92
59.96
422.51
58.02
57.76
57.76
56.74
439.03
51.52
51.37
51.37
50.10
456.72
48.56
48.23
48.23
46.87
485.47
46.76
46.35
46.35
45.56
465.55
47.09
46.49
46.49
45.83
467.24
46.55
46.11
46.11
45.25
468.63
46.16
45.89
45.89
44.77
470.70
47.05
46.90
46.90
45.44
476.94
48.56
48.23
48.23
46.87
485.47
47.50
47.29
47.29
45.72
484.42'
45.00
44.94
44.94
43.48
481.36
61.34
61.13
61.13
60 17
4^7 25
1.17
.21
57.90
57.64
57.64
56.62
•1-11 15
1.28
.26
51.24
51.09
51.09
49.82
463.49
1.42
.16
47.88
47.56
47.56
46.20
491 92
1.68
.32
46.38
45.97
45.97
45.18
472 58
1.20
.41
46.65
46.05
46.05
45.39
474 01
1.25
.60
46.06
45.62
45.62
44.76
475.32
1.30
.44
45.62
45.35
45.35
44.23
477.28
1.40
.27
46.45
46.30
46.30
44.83
483.50
1.62
.15
47.88
47.56
47.56
46.20
491.92
1.68
.32
47.50
47.29
47.29
45.71'
491.62
1.78
.21
44.97
44.91
44.91
43.45
488.43
1.52
.06
N O T ADJUSTED FOR
C H A N G E S IN R E S E R V E R E Q U I R E M E N T S ' 0
11 Total reserves"
13 Nonborrowed reserves plus extended credit
14 Required reserves
16 Excess reserves"
5
1. Latest monthly and biweekly figures are available from the Board's H.3 (502) weekly
statistical release. Historical data starting in 1959 and estimates of the effect on required
reserves of changes in reserve requirements are available from the Money and Reserves
Projections Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve
System, Washington, DC 20551.
2. Figures reflect adjustments for discontinuities, or "breaks," associated with regulatory
changes in reserve requirements. (See also table 1.10.)
3. Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, breakadjusted required reserves (line 4) plus excess reserves (line 16).
4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally adjusted,
break-adjusted total reserves (line 1) less total borrowings of depository institutions from ine
Federal Reserve (line 17).
5. Extended credit consists of borrowing at the discount window under the terms and
conditions established for the extended credit program to help depository institutions deal
with sustained liquidity pressures. Because there is not the same need to repay such
borrowing promptly as with traditional short-term adjustment credit, the money market effect
of extended credit is similar to that of nonborrowed reserves.
6. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally
adjusted, break-adjusted total reserves (line 1). plus (2) the seasonally adjusted currency
component of the money stock, plus (3) (for all quarterly reporters on the "Report of
Transaction Accounts, Other Deposits and Vault Cash" and for all those weekly reporters
whose vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted
difference between current vault cash and the amount applied to satisfy current reserve
requirements7. Break-adjusted total reserves equal break-adjusled required reserve* (line 9) plus excess
reserves (line 16).
8. To adjust required reserves for discontinuities that are due to regulatory changes in
reserve requirements, a multiplicative procedure is used to estimate what required reserves
would have been in past periods had current reserve requirements been in effect. Breakadjusted required reserves include required reserves against transactions deposits and nonpersonal time and savings deposits (but not reservable nondeposit liabilities).
9. The break-adjusted monetary base equals (1) break-adjusted total reserves (line 6). plus
(2) the (unadjusted) currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all
those weekly reporters whose vault cash exceeds their required reserves) the break-adjusted
difference beiween current vault cash and the amount applied to satisfy current reserve
requirements.
10. Reflects actual reserve requirements, including those on nondeposit liabilities, with no
adjustments to eliminate the effects of discontinuities associated with regulatory changes in
reserve requirements.
11. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy reserve
requirements.
12. The monetary base, not break-adjusted and not seasonally adjusted, consists of (1) total
reserves (line 11), plus (2) required clearing balances and adjustments to compensate for float
at Federal Reserve Banks, plus (3) the currency component of the money stock, plus (4) (for
all quarterly reporters on the "Report of Transaciion Accounts. Other Deposits and Vault
Cash" and for all those weekly reporters whose vault cash exceeds their required reserves) the
difference between current vault cash and the amount applied to satisfy current reserve
requirements. Since the introduction of contemporaneous reserve requirements in February
1984, currency and vault cash figures have been measured over the computation periods
ending on Mondays.
13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14).
Monetary and Credit Aggregates A13
1.21
MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1
Billions of dollars, averages of daily figures
1996
Dec.
1997
Dec.
Feb.
Seasonally adjusted
Measures'
1 Ml
1,150.7
3,503.0
4.333.6
5,315.8
12,998.7'
1,128.7
3,651.2
4,595.6
5,702.2
13,699.2'
1,082.8
3,826.1
4,935.5
6,088.3'
14,419.9'
1,076.0
4,040.2
5,375.7'
6,619.6'
15,153.5'
354.3
8.5
384.0
403.9
372.4
8.9
391.0
356.4
394.9
8.6
403.6
275.9
425.5
8.2
397.1
245.1
2.352.3
830.6
2,522.6
944.4
2,743.2
1,109.4
Commercial banks
12 Savings deposits, including MMDAs.
13 Small time deposits9
14 Large time deposits10' "
752.6
503.2
298.7
775.0
575.8
345.4
Thrift institutions
15 Savings deposits, including MMDAs .
16 Small time deposits9
17 Large time deposits10
397.3
314.2
64.7
Monev market mutual funds
18 Retail
19 Institution-only
385.0
203.1
2
3
4
5
M2
M3
L
Debt
Ml components
6 Currency3
7 Travelers checks4
Nonlransaction components
10 In M27
11 In M3 only8
Repurchase agreements and Eurodollars
20 Repurchase agreements12
21 Eurodollars12
Debt components
22 Federal debt
23 Nonfederal debt. .
3,491.9
9,506.7'
1.069.2
4,017.5
5,325.8'
6,553.7'
15,075.0'
1,076.0
4,040.2
5,375.7'
6,619.6'
15,153.5'
1.073.3
4,064.6'
5,423.7'
6,694.4
15,228.1
1,075.8
4.096.1
5,462.2
421.9
8.1
394.5
244.6
425.5
8.2
397.1
245.1
427.5
8.2
392.7
244.9
431.0
8.1
391.8
245.0
2,964.2
1,335.5'
2,948.3
1,308.3'
2,964.2
1,335.5'
2,991.2'
1,359.1'
3.020.2
1.366.1
904.8
594.5
413.2
1,020.9
621.6
495.8
1,009.5
621.1
487.7
1,020.9
621.6
495.8
1.033.1'
621.7'
499.4'
1,044.4
621.6
511.8
359.7
357.2
74.2
366.9
354.3
78.0
376.5
343.6
85.2
374.9
343.6'
84.4
376.5
343.6
85.2
378.6'
344.8
87.3
382.8
344.0
87.5
454.9
253.9
522.8
310.3
601.6
376.2
599.2
365.7
601.6
376.2
613.1
380.8
627.4
384.7
182.4
88.6
194.2
113.7
234.8'
143.4'
233.0'
137.5'
234.8'
143.4'
245.1'
146.4'
239.8
142.2
3,638.5
10,060.7'
3,780.0
10,639.9'
3,797.3
11,356.2'
3,790.4
11,284.6'
3,797.3
11,356.2'
3,797.4
11,430.7
Not seasonally adjusted
24
25
26
27
28
Measures'
Ml
M2
M3
L
Debt
29
30
31
32
Ml components
Currency1
Travelers checks4
Demand deposits5
Other checkable deposits 6 .. .
1.174.4
3.523.4
4.353.2
5,344.6
13,000.6'
1,152.4
3,672.0
4,615.2
5,732.7
13.699.8'
1,104.9
3,845.4
4,953.4
6,116.3'
14,419.3'
1,097.5
4,059.1
5,392.9'
6,645.4'
15,153.5'
1,074.3
4,019.9
5.331.7'
6,564.8'
15,057.2'
1,097.5
4,059.1
5,392.9'
6,645.4'
15,153.5'
1,078.7'
4,066.4'
5,427.6'
6,696.1
15,208.8
1,063.3
4,082.7
5,459.9
n.a.
n.a.
357.5
8.1
400.3
408.6
376.2
8.5
407.2
360.5
397.9
8.3
419.9
278.8
429.0
7.9
413.0'
247.6
422.4
8.0
399.8
244.2
429.0
7.9
413.0'
247.6
426.4
7.9
396.2
248.2
428.9
7.8
382.9
243.6
2.349.0
829.7
2,519.6
943.2
2,740.5
1.108.0
2,961.6
1.333.8'
2.945.6'
1.311.8'
2,961.6
1.333.8'
2,987.7'
1,361.2'
3,019.5
1.377.2
Commercial banks
35 Savings deposits, including MMDAs . .
36 Small time deposits9
37 Large time deposits' •
751.7
501.5
298.9
774.1
573.8
345.8
903.3
592.7
413.6
1,019.0
620.0
496.3
1.009.2
620.2
493.4
1,019.0
620.0
496.3
1,028.9'
621.2
491.9'
1,039.9
621.8
508.3
Thrift institutions
38 Savings deposits, including MMDAs. .
39 Small time deposits
40 Large time deposits10
396.8
313.2
64.8
359.2
355.9
74.3
366.4
353.2
78.1
375.8
342.7
85 3
374.8
343.1
85.3
375.8
342.7
85.3
377.01
344.6
86.0
381.2
344.2
86.9
Money market mutual funds
41 Retail
42 Institution-only
385.9
204.6
4564
255.8
524.8
312.7
604.1
378.9
598.3
365.2
604.1
378.9
616.0
389.8
632 4
397.7
Repurchase agreements and Eurodollars
43 Repurchase agreements12
44 Eurodollars12
179.6
81.8
178.0
89.4
188.8
114.7
228.2'
145.0'
231.5'
136.3'
228.2'
145.0'
243.9'
149.6'
239.8
144.5
3.499.0
9,501.6'
3,645.9
10,053.9'
3,787.9
10,631.3'
3,805.8
11,347.8'
3,792.1
11,265.1'
3.805.8
11.347.8'
3,792.5
11,416.3
NonlransacHon components
33 In M27
34 In M3 only8
Debt components
45 Federal debt
46 Nonfederal debt..
Footnotes appear on following page.
A14 Domestic Financial Statistics • May 1998
NOTES TO TABLE 1.21
1. Latest monthly and weekly figures are available from the Board's H.6 (508) weekly
statistical release. Historical data starting in 1959 are available from the Money and Reserves
Projections Section, Division of Monetary Affairs. Board of Governors of ihe Federal Reserve
System, Washington, DC 20551.
2. Composition of the money stock measures and debl is as follows:
Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of
depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all
commercial banks other than those owed to depository institutions, ihe U.S. government, and
foreign banks and official institutions, less cash items in the process of collection and Federal
Reserve float, and (4) other checkable deposits (OCDs). consisting of negotiable order of
withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions,
credit union share draft accounts, and demand deposits at thrift institutions. Seasonally
adjusted Ml ts computed by summing currency, travelers checks, demand deposits, and
OCDs, each seasonally adjusted separately.
M2: Ml plus (1) savings deposits (including MMDAs), (2) small-denomination time
deposits (time deposits—including retail RPs—in amounts of less than $100,000), and (3)
balances in retail money market mutual funds (money funds with minimum initial investments of less than $50,000). Excludes individual retirement accounts (IRAs) and Keogh
balances ai depository institutions and money market funds. Seasonally adjusted M2 ts
calculated by summing savings deposits, small-denomination time deposits, and retail money
fund balances, each seasonally adjusted separately, and adding this result to seasonally
adjusted Ml.
M3: M2 plus (I) large-denomination time deposits (in amounts of $100,000 or more)
issued by all depository institutions, (2) balances in institutional money funds (money funds
wilh minimum initial investments of $50,000 or more), (3) RP liabilities (overnight and term)
issued by all depository institutions, and (4) Eurodollars (overnight and term) held by U.S.
residents at foreign branches of U.S. banks worldwide and at all banking offices in the United
Kingdom and Canada. Excludes amounts held by depository institutions, the U.S. government, money market funds, and foreign banks and official institutions. Seasonally adjusted
M3 is calculated by summing large time deposits, institutional money fund balances, RP
liabilities, and Eurodollars, each seasonally adjusted separately, and adding this result to
seasonally adjusted M2.
L: M3 plus (he nonbank public holdings of U.S. savings bonds, short-term Treasury
securities, commercial paper, and bankers acceptances, net of money market fund holdings of
these assets. Seasonally adjusted L is computed by summing US. savings bonds, short-term
Treasury securities., commercial paper, and bankers acceptances, each seasonally adjusted
separately, and then adding this result to M3.
Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial
sectors—the federal sector (U.S. government, not including government-sponsored enterprises or federally related mortgage pools) and the nonfederal sectors (state and local
governments, households and nonprofit organizations, nonfinancial corporate and nonfarm
noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and
corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data,
which are derived from the Federal Reserve Board's flow of funds accounts, are breakadjusted (that is, discontinuities in the data have been smoothed into the series) and
month-averaged (that is, the data have been derived by averaging adjacent month-end levels).
3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of depository
institutions.
4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers.
Travelers checks issued by depository institutions are included in demand deposits.
5. Demand deposits at commercial banks and foreign-related institutions other than those
owed to depository institutions, the U.S. government, and foreign banks and official institutions, less cash items in the process of collection and Federal Reserve float.
6. Consists of NOW and ATS account balances at all depository institutions, credit union
share draft account balances, and demand deposits at thrift institutions.
7. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail
money fund balances.
8. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities
(overnight and term) issued by depository institutions, and (4) Eurodollars (overnight and
term) of U.S. addressees.
9. Small time deposits—including retail RPs—are those issued in amounts of less than
$100,000. All IRAs and Keogh accounts at commercial banks and thrift institutions are
subtracted from small time deposits.
10. Large time deposits are those issued in amounts of $100,000 or more, excluding those
booked at international banking facilities.
11. Large lime deposits at commercial banks less those held by money market funds,
depository institutions, the U.S. government, and foreign banks and official institutions.
12. Includes both overnight and term.
Commercial Banking Institutions—Assets and Liabilities
1.26
COMMERCIAL BANKS IN THE UNITED STATES
A. All commercial banks
A15
Assets and Liabilities1
Billions of dollars
Monthly averages
1997
Wednesday figures
1997
Dec'
Sept.
Jan.1
Feb. 4
Feb. 11
Seasonally adjusted
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Assets
Bank credit
Securities in bank credit
U.S. government securities . .
Other securities
Loans and leases in bank credit'
Commercial and industrial . .
Real estate
Revolving home equity . . .
Other
Consumer
Security1
Other loans and leases
Interbank loans
Cash assets4
Other assetss
16 Total assets'
17
18
19
20
21
22
23
24
25
26
Liabilities
Deposits
Transaction
Nontransaction
Large time
Olher
Borrowings
From banks in the US
From others
Net due to related foreign offices. .. .
Olher liabilities
27 Total liabilities
28 Residual (assets less liabilities)7
3,839.4
1,020.6
703.5
317.1
2,818.8
793.2
1,141.1
85.9
1.055.2
520.5
82.8
281.2
204.1
230.0
262.5
3,970.9
1,025.2
715.5
309.6
2,945.7
825.6
1,205.5
94.3
1.111.2
518.8
93.3
302.6
191.5
259.0
278.8
3.995.91
1,031.9
724.5
307.4
2.964.O1
837.6
1,214.1
95.5
1,118.6
515.1
94.5
302.7'
199.6
255.0'
278.8
4,479.9
4.643J
4,672.7
2,892.4
704.8
2,187.6
542.8
1,644.8
737.5
305.6
432.0
218.3
278.5'
3.029.8
697.2
2332.6
603.1
1,729.5
744.9
277.8
467.1
210.5
273.8'
3.045.8
683.0
2,362.9
618.4
1,744.5
767.2
285.5
481.7
212.0
261.8'
4,126.7'
4,259.0'
353.2'
4,031.4'
1,046.6
732.3
314.3
2,984.8'
843.7'
1.220.1
96.4
1.123.7
509.3
104.1
307.6'
201.5
2M.6'
288.9'
4,077.4
1,081.4
746.1
335.3
2,996.0
846.9
1.227.6
97.3
1.130.3
509.3
97.5
314.6
206.4
274.5
4,111.9
1,101.9
752.3
349.7
3,010.0
856.6
1.227.8
98.3
1.1296
508.6
97.2
319.8
214.3
263.2
301.3
4,159.5
1,118.6
762.4
356.2
3,040.9
865.5
1,230.3
98.7
1,131.6
505.4
117.2
322.5
201.4
262.1
303.8
4.188.4
1,120.1
768.1
352.0
3,068.3
873.7
1.244.5
99.1
1.145.4
502.2
117.4
330.5
198.1
265.4
311.4
4.174.3
1,125.5
772.7
352.8
3,048.8
869.8
1,235.5
99.1
1,136.4
502.6
115.6
325.2
191.0
257.8
301.8
4,175.7
1,111.6
760.7
350.9
3,064.1
868.9
1,244.6
99.2
1.145.4
502.0
120.8
327.7
194.5
267.6
309.8
4.187.4
1.117.9
762.3
355.6
3.069.5
873.9
1.243.8
99.1
1.144.7
500.7
119.0
332.2
198.8
275.4
316.8
4,199.1
1,124.2
769.6
354.5
3,074.9
877.4
1,245.8
99.0
1,146.8
502.4
116.4
332.9
202.2
256.4
312.8
4,800.2
4.833.8
4,870.0
4,906.4
4*68.1
4,890.7
4,921.6
4,913.5
3,061.0
682.5
2.378.5
617.1
1,761.5'
806.6
293.8
512.8
193.0
3,107.3
692.6
2.414.7
636.3
1.778.4
826.4
304.3
522.1
193.7
287.9
3,117.5
687.5
2.430.0
646.2
1,783.8
830.0
311.6
518.5
203.6
299.3
3,120.1
677.2
2,442.8
645.4
1.797.4
841.1
296.9
544.2
219.3
310.3
3.155.9
682.5
2,473.5
660.2
1.813.2
847.6
301.5
546.2
206.7
309.5
3,138.1
672.8
2,465.4
649.3
1,816.1
837.4
294.8
542.6
216.9
3054
3,143.5
671.0
2,472.5
656.1
1.816.4
853.8
312.2
541.7
213.2
310.3
3.171.6
697.6
2.474.1
662.0
1,812.1
847.9
299.0
548.9
211.2
311.2
3,149.0
682.8
2,466.2
665.5
1.8007
838.0
292.0
546.0
195.3
309.8
4,286.8'
4338.6'
4,415.2
4/450.4
4,490.8
4^19.8
4/»97.9
4,520.9
4^42.0
4,492.2
3S5.9F
391.ty
384.9
383.4
379.2
386.5
370.2
369.9
379.6
421.4
Not seasonally adjusted
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2 .. .
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security'
Other loans and leases
Interbank loans
Cash assets4
Other assets5
44 Total assets'
45
46
47
48
49
50
51
52
53
54
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the US
From others
Net due to related foreign offices
Other liabilities
55 Total liabilities
56 Residual (assets less liabilities)7
3,832.2
1,017.1
702.2
315.0
2,815.1
792.9
1,138.0
85.5
1,052.5
521.2
83.9
279.1
208.5
231.1
262.4
3,972.1
1,030.3
718.2
312.1
2,941.8
821.4
1.207.2
94.6
1.112.6
519.2
91.4
302.6
187.1
245.6
282.0
3,997.5'
1,032.2'
725.7'
306.5
2,9653'
831.8
1.217.4'
96.2
1,121.2'
517.3'
93.6
305.2'
194.1
251.7'
281.3
4,032.9'
1,046.5
733.0
313.5
2,986.4'
839.7'
1.223.4'
97.0
1.126.4'
509.4
103.9
310.0"
196.3
265.5'
285.8'
4,080.9
1,079.9
746.6
333.3
3,001.0
844.7
1.232.1
97.8
1,134.2
509.7
99.5
315.0
211.0
282.5
297.3
4,106.8
1,083.8
746.9
336.9
3,023.0
853.0
1.233.2
98.4
1.134.9
513.4
98.6
324.8
223.5
281.3
301.4
4,1560
1,107.8
754.9
352.9
3,048.2
862.9
1.232.6
98.7
1,133.8
511.1
115.8
325.9
210.9
274.4
304.4
4.180.3
1.116.1
766.4
349.7
3.064.2
873.4
1.241.2
98.6
1,142.6
502.7
118.7
328.2
202.2
267.2
310.9
4,173.5
1,120.7
768.5
352.2
3,052.8
869.8
1,235.2
98.8
1,136.4
505.6
115.9
326.4
200.9
258.0
307.2
4,171.0
1,108.9
758.7
350.1
3,062.2
868.2
1.244.1
98.9
1,145.2
503.8
121.1
325.0
200.9
254.9
309.2
4,178.1
1,113.0
760.7
352.3
3.065.1
872.8
1.239.9
98.7
1,141.1
501.6
120.8
330.0
203.5
291.1
315.1
4,179.6
1,115.5
766.7
348.8
3,064.1
876.6
1,239.8
98.3
1,141.5
501.6
117.8
328.2
199.5
262.2
310.2
4.478J
4.629.8
4,667.6
4,724.0'
4,814.7
4,856.0
4,889.2
4^03.8
4,882.8
4,8793
4,931.0
4,894.5
2,877.4
697.9
2,179.6
542.3
1,637.2
722.1
293.8
428.3
229.1
280.5'
3,019.7
684.7
2,335.0
602.2
1,732.8
749.7
282.6
467.2
206.2
272.9'
3.046.0
681.5
3,125.1
702.0
2.423.1
640.8
1,782.3
813.4
297.6
515.7
188.3
292.0
3,147.8
719.2
2,428.6
644.4
1,784.2
820 2
305.4
514.8
200.1
294.5
3,122.8
688.0
3.129.2
672.8
2,456.4
648.7
1.807.8
828.8
283.1
545.7
220.6
306.7
823.7
286.4
537.3
220.1
313.2
3.161.2
698.0
2.463.2
659.3
1.803.9
833.7
287.4
546.2
224.7
311.9
3,125.4
670.5
1,790.8
835.6
290.3
545.2
231.0
306.9
3,140.5
675.8
2.464.7
659.8
1,804.9
831.2
289.4
541.8
219.5
311.2
3,122.1
656.6
2,465.5
657.4
1,750.8
770.5
286.8
483.7'
204.3
262.2'
3,068.7'
680.4
2,388.2
624.5
1,763.8'
796.8'
286.1
510.7'
193.6
276.5'
4,109.1'
4,248.6'
4^82.9'
4,335.6'
4.41&8
4.462.5
4,4963
4,502.4
4,485.3
4,479.0
4431.5
4.489.6
369.1'
381.2'
384.7'
388.4'
395.9
393.5
392.9
401.4
397.5
400.2
399.6
404.9
102.2
86.5
78.7
78.0
83.3
82.2
92.2
87.4
89.8
87.0
87.3
98.9
89.6
81.8
81.4
85.5
95.4
90.0
92.9
89.6
89.7
2,364.5
613.7
2,434.7
644.0
2.454.9
665.7
1.789.3
830 2
294.7
535.5
222.6
311.3
MEMO
57 Revaluation gains on off-balance-sheet
items"
58 Revaluation losses on ofF-balancesheet items8
Footnotes appear on p. A21.
91.4
A16
1.26
Domestic Financial Statistics • May 1998
COMMERCIAL BANKS IN THE UNITED STATES
B. Domestically chartered commercial banks
Assets and Liabilities1—Continued
Billions of dollars
Wednesday figures
Monthly averages
1997
1997
Aug.
Sept.
Oct.
1998
Nov.r
Dec.'
Jan/
Feb.
Seasonally adjusted
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Asseis
Bank credit
Securities in bank credit
U.S. government securities . .
Other securities
Loans and leases in bank credit2..
Commercial and industrial . .
Real estate
Revolving home equity. . .
Other
Consumer
Security3
Other loans and leases
Interbank loans
Cash assets4
Other assets5
16 Total assets6
17
18
19
20
21
22
23
24
25
26
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due lo related foreign offices .
Other liabilities
27 Total liabilities
7
28 Residual (assets less liabilities) . .
3,308.4
843.2
618.8
224.4
2,465.2
576.1
1,109.0
85.9
1,023.1
520.5
43.1
216.5
183.2
197.2
221.3
3,438.3
847.3
629.8
217.5
2,591.0
605.9
1,177.1
94.3
1,082.9
518.8
51.0
238.2
173.5
224.6
236.2
3,458.5r
849.5
636.7
212.8
2,609.0'
615.5'
1,186.2'
95.5
1,090.7
515.1
51.5
240.7'
181.7
219.4'
236.8
3,487.5'
865.3
646.0'
219.4
2,622.2'
620.2'
1,192.4
96.4
1,096.0
509.3
57.8'
242.5'
181.5
229.7'
247.5'
3.525.3
885.6
660.0
225.6
2,639.7
624.3
1.200.7
97.3
1,103.4
509.3
56.4
249.0
183.2
238.3
253.9
3,552.1
902.0
668.0
234.0
3,581.7
919.3
681.8
237.5
2.650.1
632.9
2.662.4
639.1
1.201.4
98.3
1,103.1
508.6
52.6
254.7
183.6
228.6
259.5
3,854.3
4,015.9
4,040.0
4,089.8'
4,144.1
2,654.5
695.1
1,959.3
318.4
1,640.9
593.9
271.2
322.7
78.2
178.2'
2,766.4
686.0
2,080.4
353.4
1,727.0
607.4
246.6
360.8
79.8
m.f
2,780.3
672.2
2,108.1
366.1
1,742.0
623.9
249.6
374.3'
84.7
167.7'
2,800.2'
672.1
2,128.1'
369.0
1,759.1'
644.8
256.2'
388.6
74.4
184.6'
3,504.8'
3,631.6'
3,656.6'
349.5'
384.3'
383.4'
1,217.7
99.2
1,118.5
502.0
64.0
254.6
167.9
233.7
267.8
3,611.7
922.5
681.2
241.3
2,689.3
647.5
1,216.9
99.1
1,117.7
500.7
65.4
258.7
173.3
242.3
274.9
3,617.1
929.0
683.2
245.8
2,688.1
649.7
1,219.0
99.0
1,120.1
502.4
60.1
256.9
177.6
223.2
270.1
4,189.5
4,211.1
4,245.5
4,231.1
2,864.7
671.8
2,192.9
383.5
1,809.5
690.4
274.5
415.9
81.5
212.8
2,860.0
662.4
2,197.5
384.0
1,813.6
673.8
265.5
408.2
81.0
209.9
2,853.9
660.5
2,193.3
382.2
1,811.1
705.2
288.7
416.4
79.7
211.4
2,877.5
687.0
2,190.5
383.3
1,807.2
691.3
272.4
418.9
90.3
213.6
2,853.2
672.0
2,181.2
382.9
1,798.3
677.6
263.5
414.1
81.0
214.2
3,822.4
3,849.5
3,824.6
3,850.1
3,872.7
3,826.0
365.4
378.1
364.9
360.9
372.8
405.1
3,591.1
917.1
677.0
240.1
2,674.0
643.0
1,208.0
98.8
1,109.2
505.6
63.6
253.8
177.1
226.2
265.0
3.591.4
911.6
673.9
237.7
2,679.9
642.9
1,217.1
98.9
1,118.2
503.8
64.2
251.9
174.3
221.7
265.8
3,603.4
917.3
678.5
238.8
2,686.1
647.0
1,212.9
98.7
1.114.2
501.6
67.3
257.4
177.9
259.2
272.7
3,601.2
922.2
679.9
242.3
2,679.0
649.3
1,213.2
98.3
1.114.8
501.6
61.6
253.4
174.8
229.8
266.5
1.203.2
98.7
1,104.5
505.4
62.7
252.0
174.0
229.3
259.3
3,609.0
922.6
682.1
240.5
2,686.4
647.0
1.217.7
99.1
1,118.6
502.2
62.9
256.7
173.8
232.3
269.3
3,592.9
921.9
683.3
238.5
2,671.0
643.2
1,208.4
99.1
1,109.3
502.6
63.4
253.4
167.3
225.9
260.0
4,167.2
4,187.8
4,227.6
2,835.2
681.9
2.153.3
377.3
1,776.0
661.4
273.8
387.6
74.3
190.9
2,839.5
677.0
2,162.5
381.2
1,781.3
672.8
283.9
388.9
77.7
201.0
2,844.1
666.2
2,177.8
382.8
1,795.0
682.0
271.7
410.3
84.1
212.3
3,704.0r
3,761.8
3,791.0
385.8'
382.3
376.2
3,598.2
915.5
677.5
238.0
2,682.7
644.3
Not seasonally adjusted
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
Asseis
Bank credii
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security1
Other loans and leases
Interbank loans
Cash assets4
Other assets5
44 Total assets6
45
46
47
48
49
50
51
52
53
54
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
55 Total liabUities
56 Residual (assets less liabilities;7
3,300.7
838.9
615.7
223.1
2,461.8
575.8
1,105.9
85.5
1.020.4
521.2
44.2
214.7
187.6
199.0
220.4
3,435.5
848.9
630.9
218.0
2,586.7
601.5
1,178.8
94.6
1,084.2
519.2
49.1
238.0
169.1
211.3
238.6
3,462.1'
851.4
638.9
212.5
2,610.6'
611.1
1,189.5
96.2
1,093.3
517.3'
50.6
242.2'
176.1
217.0'
238.9
3,490.4'
865.3
647.4
217.9
2,625.1'
617.4'
1,195.6
97.0
1,098.6
509.4
57.6'
245.1'
176.3
230.4'
244.8
3,529.7
884.8
660.9
223.9
2,644.9
622.3
1,204.8
97.8
1,106.9
509.7
58.4
249.8
187.8
246.0
252.1
3.552.2
891.8
665.2
226.6
2,660.5
628.8
1,206.6
98.4
1,108.2
513.4
54.0
257.7
192.9
245.3
258.7
3,581.8
913.4
673.3
240.2
1,205.5
98.7
1,106.8
511.1
61.2
253.9
183.5
241.2
260.9
3,600.8
918.1
678.8
239.2
2,682.8
646.7
1,214.4
98.6
1,115.8
502.7
64.2
254.8
177.9
234.8
267.9
3,851.9
3,997.8'
4,037.5'
4,085.6"
4.1S9.0
4,192.4
4.211.1
4,224.9
4,202.9
4,196.7
4,256.7
4,215.7
2,642.6
687.9
1,954.7
321.3
1,633.4
585.0
261.7
323.3
79.9
177.7'
2,758.5
673.8
2,084.7
354.4
1,730.3
607.1
250.9
356.2
77.4
176.5'
2,781.4
670.2
2,111.2
362.8
1.748.3
626.3'
251.9
374.4
80.1
168.3'
2,799.9'
670.0
2,129.9
368.6
1,761.3
639.7
251.7'
388.1'
76.0
185.2'
2,849.5
691.4
2,158.1
378.2
1,779.9
653.6
267.2
386.5
70.6
194.3
2,866.7
707.9
2.158.8
377.0
1,781.8
665.0
277.2
387.8
73.8
197.7
2,846.6
677.0
2,169.6
381.3
1,788.3
680.0
264.2
415.8
86.1
209.9
2,853.2
6649
2,188.3
387.1
1,801.2
680.7
264.3
416.4
83.3
212.1
2,853.4
662.1
2,191.3
386.0
1.805.3
668.0
253.6
414.4
79.1
209.2
2,835.3
645.9
2.189.4
386.7
1,802.8
678.7
263.8
415.0
77.7
211.0
2,873.8
687.1
2,186.7
387.6
1,799.1
685.7
263.2
422.5
90.9
213.0
2,832.7
659.5
2,173.3
386.4
1,786.8
681.3
269.8
411.5
89.7
213.1
3,485.2'
3,619.5'
3,656.1'
3,700.8r
3,768.0
3,803.2
3,822.5
3,829.4
3,809.7
3,802.7
3,863.4
3,816.8
366.7'
378.2'
381.3'
384.8'
391.0
389.2
388.5
395.5
393.1
394.0
393.3
398.9
55.9
45.1
37.5
50.1
47.3
48.9
46.8
46.9
50.9
243.6
46.5
256.4
40.0
2S9.3
41.3
265.0
43.6
273.8
44.2
279.1
52.9
287.5
49.5
291.9
51.6
292.5
48.8
292.2
48.8
288.5
2,668.4
636.6
MEMO
57 Revaluation gains on off-balance-sheet
items8
58 Revaluation losses on off-balancesheet items8
59 Mortgage-backed securities9
Footnotes appear on p. A21.
51.2
292.9
Commercial Banking Institutions—Assets and Liabilities A17
1.26
COMMERCIAL BANKS IN THE UNITED STATES
C. Large domestically chartered commercial banks
Assets and Liabilities1—Continued
Billions of dollars
Monthly averages
Account
1997
Feb.'
Wednesday figures
1997'
Aug.
Sept.
Oct.
1998
Nov.
Dec.
Jan.'
1998
Feb.
Feb. 4
Feb. 11
Feb. 18
Feb. 25
Seasonally adjusted
Assets
1 Bank credit
2
Securities in bank credit
3
U.S. government securities
4
Trading account
5
Investment account
6
Other securities
7
Trading account
8
Investment account
9
State and local government..
10
Other
11 Loans and leases in bank credit2 .. .
12
Commercial and industrial
13
Bankers acceptances
14
Other .
15
Real estate
16
Revolving home equity
17
Other
18
Consumer
19
Security1
20
Federal funds sold to and
repurchase agreements
with broker-dealers
21
Other
22
State and local government
23
Agricultural
24
Federal funds sold to and
repurchase agreements
with others
25
All other loans
26
Lease-financing receivables
27 Interbank loans
28
Federal funds sold to and
repurchase agreements with
commercial banks
29
Other
30 Cash assets4
31 Other assets5
32 Total assets6
33
34
35
36
37
38
39
40
41
42
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the US
From others
Net due to related foreign offices
Other liabilities
43 Total liabilities
44 Residual (assets less liabilities)7
Footnotes appear on p. A21.
1,984.2
450.0
305.1
162
288.9
144.9
800
64.9
21.2
43.7
1,534.2
407.4
1.7
405.7
625.9
61.0
564.9
307.6
38.4
2,039.7
441.8
306.8
20.6
286.1
135.0
63.7
71.4
22.4
48.9
1,598.0
426.8
1.5
425.3
647.3
66.1
581.1
305.1
46.3
2,051.1
444.6
313.7
214
290.3
130.9
59.6
71.3
22.3
49.0
1,606.5
434.6
1.5
433.1
648 9
67.1
581 8
302.9
46.6
2.076.2
460.4
323.3
25.2
298.1
137.2
65.4
71.8
22.4
49.4
1.615.8
438.3
1.3
437.0
649.7
67.6
582.1
299.7
52.6
2,097.2
477.8
336.5
26.5
310.1
141.3
68.8
72.5
22.2
50.3
1,619.4
439.9
1.3
438.7
650.4
68.0
582.4
297.2
51.3
2,113.1
492.0
343.3
29.4
314.0
148.6
72.2
76.5
22.1
54.4
1.621.1
446.7
1.3
445.4
646.9
68.8
578.2
294.6
47.3
2,140.5
511.0
358.9
29.6
329.3
152.0
74.3
77.7
22.5
55 2
1,629.6
451.5
1.2
450.3
645.0
69.2
575.8
293.4
57.5
2.161.8
516.4
361.8
28.0
333.8
154.6
75.7
78.9
22.7
56.2
1,645.4
457.0
1.2
455.8
652.7
69.3
583.5
291.9
57.6
2,150.7
517.0
363.4
28.3
335.1
153.6
74.7
78.9
22.7
56 2
1,633.7
454.4
1.2
454.3
647.1
69.2
577.9
291.3
58.0
2,153.6
510.6
357.8
Til
330.1
152.8
74.1
78.7
22.7
55.9
1.643.0
454.5
1.2
454.4
654.0
69.4
584.6
291.9
58.8
2,164.3
516.5
361.1
28.9
332.2
155.4
76.2
79.1
22.7
564
1.647.8
457.2
1.2
457.1
651.3
69.4
581.9
290.6
60.2
2,169.2
522.9
363.4
27.3
336.1
159.5
79.9
79.6
22.7
56.9
1,646.3
459.4
1.2
459.2
652.5
69.2
583.3
293.0
54.7
23.0
15.4
11.6
9.1
30.0
16.3
11.3
9.2
29.7
16.9
11.3
9.3
35.4
17.1
11.2
9.5
35.1
16.2
11.1
9.7
31.1
16.3
11.1
9.8
41.2
16.4
111
9.5
42.1
15.5
11.0
9.4
42.6
15.4
11.1
9.5
43.7
15.1
11.1
9.5
45.8
14.4
11.1
9.5
37.7
17.0
10.7
9.3
5.5
62.6
66.1
134.0
6.4
69.3
76.3
122.5
6.7
68.9
77.3
129.0
9.0
67.6
78.2
125.5
10.8
69.5
79.4
128.0
12.5
71.0
81.3
IZ5.5
7.5
71.0
83.1
116.3
5.2
75.6
85.0
113.7
4.8
73.5
83.9
106.4
4.3
74.8
84.0
109.8
5.8
76.8
85.4
113.2
5.3
75.6
85.7
118.1
84.6
49.3
133.8
172.7
74.9
47.6
153.5
173.2
81.7
47.3
148.1
175.7
78.8
46.6
160.4
184.1
82.3
45.7
166.5
187.7
81.4
44.1
158.3
195.1
74.4
41.8
159.7
195.5
66.0
47.7
160.1
203.0
63.1
43.4
155.6
196.2
62.0
47.8
161.1
201.4
65.7
47.5
167.3
205.9
69.1
49.0
153.0
205.7
23*7.7
2,451.9
1467.2
1509.4
2342.6
15553
1575.4
16010
15714
15893
2.614.0
2,6093
1,481.3
401.2
1,080.1
167.8
912.2
444.8
185.9
259.0
74.2
154.3
1,517.4
385.5
1,132.0
191.8
940.2
450.7
168.7
282.1
75.3
150.8
1,525.5
373.9
1,151.5
202.1
949.4
468.2
175.5
292.7
79.9
139.6
1,534.4
375.0
1,159.4
203.4
955.9
490.9
182.6
308.2
69.2
156.8
1,554.6
381.2
1.173.5
209.8
963.7
506.2
2(10.7
305.5
69.3
162.4
1,557.5
379.5
1,178.0
211.8
9661
514.2
209.7
304.5
73.4
172.2
1.551.5
371.5
1,180.1
212.1
967 9
525.4
199.8
325.6
79.9
184.7
1,561 1
373.8
1,187.3
212.8
9746
532.4
202.4
330.0
75.4
185.1
1,560.0
368.2
1,191.8
213.2
978 6
516.0
193.7
322.3
76.9
182.2
1,550.9
365.4
1,185.5
211.6
973.9
544.2
213.8
330.4
76.1
183.7
1.569.0
385.5
1,183.5
211.9
971.5
534.1
200.6
333.5
77.2
186.7
1.555.0
372.9
1.182.1
213.0
9690
523.7
195.5
328.2
774
186.0
2,154.7
2,1943
2,213.2
12513
1292.6
2317.2
13413
2354.0
2335.1
2354.9
2367.1
23411
233.0
257.6
254.0
258.1
250.0
238.1
233.9
248.0
2J7.3
234 5
246.9
267.2
A18
1.26
Domestic Financial Statistics • May 1998
COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued
C. Large domestically chartered commercial banks—Continued
Wednesday figures
Monthly averages
1997
Account
Feb. 1
1997'
Aug.
Sept.
Oct.
1998
1998
Nov.
Dec.
Jan.r
Feb.
Feb. 4
Feb. 11
Feb. 18
Feb. 25
Nol seasonally adjusted
Assets
45 Bank credit
46
Securities in bank credit
47
U.S. government securities
48
Trading account
49
Investment account
50
Mortgage-backed securities.
51
Other
52
One year or less
53
Between one and five years
54
More than five years . . . .
55
Other securities
56
Trading account
57
Investment account
58
State and local government ..
59
Other
60
Loans and leases in bank credit2 ..
61
Commercial and industrial
62
Bankers acceptances
....
63
Other
64
Real estate
65
Revolving home equity
66
Other
67
Commercial
68
Consumer
69
Security3
70
Federal funds sold to and
repurchase agreements
with broker-dealers
71
Other
72
State and local government
73
Agricultural
74
Federal funds sold to and
repurchase agreements
with others
75
All other loans
76
Lease-financing receivables . . . .
77 Interbank loans
78
Federal funds sold to and
repurchase agreements
with commercial banks
79
Other
80 Cash assets4
81 Other assets5
82 Total assets6
83
84
85
86
87
88
89
90
91
92
Liabilities
Deposits
Transaction
Nonlransaclion
Large time
Other
Borrowings
From banks in the US
From nonbanks in the US
Net due to related foreign offices . . . .
Other liabilities
93 Total liabilities
94 Residual (assets less liabilities)
7
1,982.0
447.3
303.4
16.4
287.0
185.7
101.3
27.3
58.4
15.6
143.9
78.8
65.0
21.2
43.8
1.534.7
407.4
17
405.7
625.3
60.8
347.9
216.6
307.5
39.4
2,037.3
445.1
309.5
21.3
288.2
190.0
98.2
26.8
50.0
21.4
135.7
64.8
70.9
22.2
48.7
1,592.1
423.6
15
422.1
647.7
66.3
361.4
220.1
305.6
44.5
2,050.7
446.0
315.3
23.4
292.0
191.8
100.1
27.6
49.8
22.7
130.7
59.4
71.3
22.3
49.0
1,604.7
431.2
15
429.7
649.9
67.4
361.1
221.4
304 3
45.8
2.0764
461.3
325.7
26.1
299.6
197.4
102.1
26.3
52.7
23.1
135.7
63.3
72.3
22.4
50.0
1,615.0
436.2
1.4
434.8
650.5
68.0
359.2
223.3
299.2
52.4
2,100.0
478.5
339.1
28.0
311.1
205.9
105.2
28.9
53.5
22.8
139.4
65.9
73.5
22.3
51.2
1,621.4
438.6
1.4
437.3
6522
68.4
359.2
224.5
2969
53.0
2.110.3
482.1
341.0
26.9
314.0
210.7
103.3
27.6
53.3
22.5
141.2
63.9
77.2
22.2
55.1
1,628.2
443.1
1.3
441.8
6500
68.8
356.6
224.6
2986
48.5
2,142.7
506.5
351.6
28.2
323.5
218.6
104.9
26.4
52.2
26.3
154.9
76.6
78.3
22.5
55.8
1.636.2
449.0
12
447.8
647.7
69.3
356.3
222.1
298.2
56.0
2,159.4
513.5
359.8
28.4
331.4
221.2
110.2
28.3
51.4
30.5
153.7
74.6
79.1
22.7
56.4
1,645.9
457.0
1.2
455.8
652.1
69.0
360.1
222.9
291.7
58.7
2,154.0
5147
359.2
27.4
331.8
221.6
110.1
28.7
53.4
28.0
155.6
76.1
79.4
22.7
56.8
1,639.2
454.5
1.2
453.3
648.6
69.2
356.8
222.7
293.1
58.0
2,151.7
507.7
354.8
27.4
327.4
221.7
105.7
27.6
50.9
27.2
152.9
74.0
78.9
22.7
56.2
1,644.0
453.7
1.2
452.5
6557
69.3
363.6
222.8
2923
58.8
2,162.5
513.4
360.2
30.6
329.6
217.8
111.8
28.2
51.8
31.8
153.2
74.0
79.2
22.7
56.5
1,649.2
457.0
1.2
455.8
650.4
69.1
358.4
222.8
2906
61.9
2,159.4
517.2
361.1
26.9
334.1
222.5
111.6
28.4
50.2
33.1
156 2
76.6
79.5
22.7
56.8
1,642.2
459 1
1.2
457.9
649 5
68.8
357.5
223.1
291.8
56.3
23.3
16.2
11.6
8.9
28.5
16.0
11.4
9.5
29.3
16.5
11.4
9.6
35.5
17.0
11.3
9.6
36.5
16.5
11.1
9.7
31.3
17.3
11.1
9.7
39.5
16.4
10.9
9.4
42.5
16.3
10.9
9.1
42.4
15.6
11.0
9.3
43.2
15.6
11.0
92
46.5
15.4
11.0
9.2
38.1
18.2
10.7
8.9
6.3
61.6
66.8
136.3
6.3
68.1
75.4
119.1
7.3
68.5
76.6
125.2
8.8
68.7
78.2
120.1
8.8
71.7
79.4
127.7
11.0
74.6
81.5
131.5
7.6
73.0
84.4
124.5
6.1
74.4
85.8
115.7
5.8
74.2
84.8
112.5
5.6
72.9
84.9
112.5
6.7
76.2
86.3
116.6
5.9
73.4
86.5
115.9
86.6
49.6
136.4
170.4
71.8
47.3
142.7
175.5
78.6
46.7
147.3
177.4
73.7
46.4
159.9
181.7
82.4
45.3
171.4
185.2
85.1
46.4
171.2
193.5
79.5
45.0
169.4
196.0
67.7
48.0
163.4
200.2
67.7
44.9
156.4
197.6
64.2
48.4
153.0
198.8
68.4
48.2
183.0
201.8
67.4
48.5
159.4
201.1
2388.1
2^373
2*3.6
2301.4
23474
2369JS
23963
2^02.1
2383.9
2379.3
2,627.4
23993
1,479.3
397.9
1,081.4
170.0
911.4
437.3
178.3
259.0
76.0
153.4
1,512.2
376.4
1,135.7
193.1
942.7
451.9
173.0
278.9
72.9
149.3
1,524.3
372.7
1,151.6
199.1
952.5
471.2
177.1
294.1
75.3
140.6
1,531.8
372.4
1,159.4
202.6
956.8
485.7
178.8
306.9
70.8
157.5
1361.2
387.3
1,173.9
210.3
963.6
500.1
195.8
304.3
65.6
166.0
1,571.7
399.9
1,171.8
208.7
963.1
507.0
203.7
303.3
69.5
169.5
1.557.3
378.9
1.178.4
212.0
966.3
521.6
192.7
329.0
81.8
182.1
1,559.4
370.5
1,188.9
215.7
973.2
523.9
194.0
329.9
77.2
184.0
1.559.7
367.3
1.192 4
215.3
977.1
512.4
184.5
328.0
75.0
181.1
1,545.1
355.8
1,189.3
215.3
974.1
522.6
193.8
328.7
74.1
182.6
1,575.2
389.1
1,186.1
215.5
970.6
528.9
193.1
335.9
77.8
185.8
1,546.2
366.5
1.179.7
215.4
964.3
523.3
198.5
324.7
86.1
184.5
2,145.9
2,1863
2J1L5
2045.8
2^92.9
2317.6
2342.8
23444
2328J
23243
2367.7
2340.1
242.2
251.0
252.2
255.6
254.5
252.1
253.4
257.6
255.7
255.0
259.7
259.2
55.9
45.1
37.5
38.2
41.5
41.3
50.1
47.3
48.9
46.8
46.9
48.7
50.9
206.5
139.7
46.5
208.2
143.1
40.0
210.0
144.6
41.3
215.7
149.3
43.6
224.1
154.2
44.2
228.9
157.2
52.9
237.2
162.1
49.5
240.9
164.4
51.6
241.4
164.8
48.8
241.1
164.1
48.8
237.7
161.6
51.2
242.1
166.3
66.8
65.1
65.4
66.4
70.0
71.7
75.1
76.5
76.7
77.0
76.1
75.8
2.0
32.1
3.0
34.0
2.5
34.1
2.5
34.2
2.4
34.4
2.2
34.2
3.0
35.5
3.3
36.2
3.5
37.4
3.4
365
3.4
36.3
3.3
35.6
MEMO
95 Revaluation gains on off-balancesheet items8
96 Revaluation losses on off-balancesheet items8
97 Mortgage-backed securities9
98
Pass-through securities
99
CMOs, REMICs, and other
mortgage-backed securities. . .
100 Net unrealized gains (losses) on
available-for-sale securities1 . . .
101 Offshore credit to U.S. residents' . . .
Footnotes appear on p. A21.
Commercial Banking Institutions—Assets and Liabilities
1.26
COMMERCIAL BANKS IN THE UNITED STATES
D. Small domestically chartered commercial banks
A19
Assets and Liabilities'—Continued
Billions of dollars
Monthly averages
Account
1997
Feb.'
Wednesd *y figures
1997'
Aug.
Sept.
Oct.
1998
Nov.
Dec.
Jan.'
1998
Feb.
Feb. 4
Feb. 11
Feb. 18
Feb. 25
Seasonally adjusted
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Assets
Bank credit
Securities in bank credit
US government securities
Other securities
Loans and leases in bank credit2
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security3
Other loans and leases
Interbank loans
Cash assets4
Other assets5
16 Total assets 6
17
18
19
20
21
22
23
24
25
26
Liabilities
Deposits
Transaction
Nontransaction
Large lime
Other
Borrowings
From banks in the U S
From others
Net due to related foreign offices
Other liabilities
27 Total liabilities
28 Residual (assets less liabilities)7
1,324.2
393.2
313.7
79.5
931.0
168.7
483.2
24.9
458.3
212.9
4.6
61.6
49.3
63.3
48.6
1,398.6
405.5
323.0
82.5
993.0
179.1
529.9
28.1
501.7
213.7
4.7
65.7
51.0
71.0
63.1
1,407.4
405.0
323.0
81.9
1,002.5
180.9
537.4
28.4
508.9
212.2
4.9
67.1
52.6
71.3
61.1
1,411.3
404.9
322.7
82.2
1,006.4
181.8
542.7
28.8
513.9
209.6
5.2
67.1
560
69.3
63.4
1,428.1
407.8
323.4
84.4
1,020.3
184.4
550.3
29.3
521.0
212.1
5.1
68.4
55.2
71.8
66.3
1,439.0
410.0
324.6
85.4
1,028.9
186.2
554.4
29.5
524.9
214.0
5.2
69.1
58.1
70.4
64.4
1,441.2
408.3
322.8
85.5
1,032.9
187.6
558.3
29.5
528.7
212.0
5.1
69.8
57 7
69.7
63.8
1.447.2
406.2
320.3
85.9
1,041.0
190.0
564.9
29.8
535.1
210.3
5.3
70.5
60.1
72.2
66.2
1,442.3
404.9
319.9
85.0
1,037.4
188.8
561.3
29.8
531.4
211.3
5.4
70.6
60.8
70.3
63.8
1,444.6
404.9
319.6
85.2
1.039.7
189.8
563.8
29.8
534.0
2102
52
70.8
58.1
72.7
66.4
1.447.5
406.0
320.0
85.9
1,041.5
190.4
565.6
29.8
535.8
210.1
5.3
70.2
60.1
75.0
68.9
1,447.9
406.1
319.8
86.3
1,041.8
190.3
566.5
29.8
536.8
209.4
5.4
70.1
59.4
702
64.4
1466.6
1364.0
1,572^
1,5803
1.601.5
1,611.9
1,6124
1,625.6
1,617.1
1,621.7
1,631.5
1,621.8
1,173.2
293.9
879.2
150.6
728.6
149.1
85.4
63.7
4.0
23.9
1.249.0
300.6
948.4
161.6
786.8
156.7
78.0
78.7
4.5
27.1
1254.8
298.2
956.6
164.1
792.5
155.7
74.1
81.5
4.8
28.0
1,265.8
297.1
968.7
165.5
8032
154.0
73 5
80.4
27.7
1,280.6
300.7
979.8
167.5
812.3
155.2
73 1
82.1
5.0
28.4
1.282.0
297.5
984.6
169.4
815.2
158.6
74.2
84.4
4.3
28.8
1,292.5
294.7
997.8
170.7
827.1
156.6
71 9
84.7
4.2
27.5
1,303.7
298.1
1,005.6
170.7
834.9
158.0
72.1
85.9
6.1
27.7
1,300.0
294.3
1,005.7
170.8
835.0
157.8
71.9
85.9
4.1
27.6
1,303.0
2952
1,007.8
170.6
8372
161.0
74.9
86.0
3.6
27.7
1.308.5
301.5
1.007.1
171.4
835.7
157.1
71.8
85.3
13.1
26.9
1,2982
299.1
999.1
169.9
8292
153.9
68.0
85.9
3.6
28.2
1350.1
1437.2
1,443.4
1452.6
1,4692
1,473.8
1480.9
1495.5
1489.5
1,4953
1,505.6
1483.9
116.5
126.8
129.4
127.7
132.3
138.1
131.5
1302
127.6
126.5
125.9
137.9
5.2
Not seasonally adjusted
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
Assets
Bank credit
Securities in bank credit
U.S. government securities
Olher securities
Loans and leases in bank credit2
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security1
Other loans and leases
Interbank loans
Cash assets4
Other assets5
44 Total assets 6
45
46
47
48
49
50
51
52
53
54
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
55 Total liabilities
56 Residual (assets less liabilities)7
1,318.7
391.6
312.3
79.3
927.2
168.4
480.6
24.7
455.9
213.7
4.7
59.7
51.3
62.6
50.0
1,398.3
403.7
321.4
82.3
994.6
177.9
531.1
28.3
502.8
213.6
4.6
67.3
50.0
68.6
63.1
1,411.4
405.4
323.6
81.8
1,006.0
179.9
539.6
28.8
510.8
213.0
4.8
68.8
50.9
69.7
61.6
1,414.1
403.9
321.7
82.2
1,010.1
181.2
545.0
29.0
516.0
210.2
5.1
68.5
56.2
70.5
63.1
1,429.7
406.3
321.8
84.4
1,023.5
183.7
552.6
29.4
523.2
212.8
5.3
69.2
60.2
74.6
66.9
1,441.9
409.6
3242
85.4
1,032.3
185.7
556.6
29.6
527.0
214.8
5.4
69.8
61.4
74.2
65.2
1,439.1
406.9
321.6
85.3
1,032.2
187.6
557.9
29.4
528.4
212.9
5.3
68.6
59.0
71.8
64.9
1,441.4
404.6
319.0
85.6
1,036.8
189.7
562.3
29.6
532.7
211.0
5.5
68.4
62.3
71.4
67.8
1,4372
402.4
317.8
84.6
1,034.8
188.5
559.4
29.6
529.8
212.5
5.6
68.8
64.6
69.8
67.4
1,439.8
403.9
319.1
84.8
1,035.9
1892
561.5
29.7
531.8
211.5
5.4
68.3
61.8
68.7
67.1
1,440.9
403.9
318.3
85.6
1.037.0
189.9
562.6
29.6
533.0
211.0
5.4
68.1
61.3
76.2
70.9
1,441.8
404.9
318.8
86.1
1.036.9
190.1
563.7
29.5
534.2
209.8
5.3
68.0
58.9
70.4
65.4
1463.8
1,5604
1,573.8
1,584.2
1,611.6
1,622.6
1,614.9
1622£
1,619.0
1,6174
1,6293
1,616.4
1 163.3
290.1
873.2
1513
722.0
147 7
83.4
64.2
4.0
24.4
1,246.3
297.4
949.0
161.3
787.7
155.2
77.9
77.3
4.5
27.2
1257 1
297.5
959.6
163.7
795.8
155 0
74.8
80.3
4.8
27.7
1,268.1
297 6
970.6
1660
8046
154.0
72.9
81 1
5.2
27.7
1,288.3
3040
984.2
168.0
816.3
153.5
71.3
822
5.0
28.3
1,295.0
308.0
987.0
168.3
818.7
158.0
73.5
84.5
4.3
28.3
1,289.3
2981
991.2
169.3
822.0
158.4
71.5
86.8
42
27.8
1,293.9
294.5
999.4
171.4
827.9
156.8
70.3
86.5
6.1
28.2
1,293.7
294.8
998.9
170.7
828.2
155.5
69.1
86.4
4.1
282
1,290.2
290.1
1,000.1
1714
828.7
156.1
69.9
862
3.6
28.4
1,298.6
298.0
1.000.6
172.1
828.6
1568
70.1
86.7
13.1
27.2
12865
292.9
993.6
171 1
822.5
1581
71.3
868
3.6
28.6
13393
1,433.2
1,444.7
1455.0
1475.1
1,485.6
1479.7
1.484.9
1.481.5
14784
1495.7
1476.7
124.5
127.2
129.2
129.2
136.5
137.0
135.2
137.9
137.5
139.0
133.7
139.7
37.1
48.2
49.3
49.3
49.7
50.2
50.4
51.0
51.0
51.1
50.8
50.9
MEMO
57 Mortgage-backed securities''
Footnotes appear on p. A21.
A20
1.26
Domestic Financial Statistics D May 1998
COMMERCIAL BANKS IN THE UNITED STATES
Assets and Liabilities'—Continued
E. Foreign-related institutions
Billions of dollars
Wednesd* y figures
Monthly averages
Account
Feb.
Aug.
Sept.
Oct.
1998
1998
1997
1997
Nov.
Dec.
Jan.'
Feb.
Feb. 4
Feb. 11
Feb. 18
Feb. 25
Seasonally adjusted
1
2
3
4
5
6
7
8
9
10
11
12
Assets
Bank credit
Securities in bank credit
US government securities
Other securities
Loans and leases in bank credit2 . . .
Commercial and industrial
Real estate
Security3
Other loans and leases
Interbank loans
Cash assets4
Other assets5
13 Total assets6
14
15
16
17
18
19
20
71
22
23
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the US
From others
Net due to related foreign offices
Other liabilities
24 Total liabilities
25 Residual (assets less liabilities)7
531.0
177.4
84.7
92.7
353.6
217.1
32.0
39.8
64.7
20.9
32.9
41.2
532.6
177.9
85.8
92.1
354.7
219.7
28.3
543.9
181.3
86.4
94.9
362.6
223.6
27.7
46.3
65.0
20.0
34.8
41.4
552.1
195.8
86.1
109.7
356.3
222.6
26.9
41.1
65.6
23.1
36.2
44.9
559.9
199.9
84.3
115.6
359.9'
223.8'
26.5
44.6'
65 1'
30.7'
34.6'
41.8'
577.8
199.3
80.6
118.7
378.5
226.4
27.0
54.5
70.5
27.5
32.7
44.4
579.4
197.5
86.0
111.5
381.9
226.7
26.8
54.5
73.8
24.3
33.1
42.2
581.3
203.6
89.3
114.3
377.7
226.6
27.1
52.2
71.8
23.8
31.9
41.9
577.6
1% 1
83.3
112.8
381.4
224.6
26.9
56.9
73.1
26.6
33.8
41.9
575.7
195.4
81.1
114.3
380.3
226.3
27.0
53.5
73.5
25.6
33.1
41.9
582.0
195.2
86.5
108.7
386.8
644
18.0
34.4
42.6
537.4
182.4
87.8
94.6
355.0
222.2
27.9
43.0
62.0
18.0
35.5
42.0
625.7
627.4
632.7
639.9
656.0'
666.7'
6812
678.7
678.6
679.7
676.1
682.4
238.0
9.7
228.3
224.3
3.9
143.7
34.4
109.3
140.0
100.3
263.4
11.2
252.2
249.7
2.5
137.4
31.2
106.3
130.6
96.0
265.5'
10.8
254.8
252.3
2.5
143.3
35.9
107.4
127.3
94.1
260.9
10.4
250.5
248.1
2.4
161.8
37.7
124.1
118.6
93.4
272.1
10.7
261.4
259.0
2.4
165.1
30.5
134.5
1194
97.0
278.0
10.5
267.4
265.0
2.4
157.2'
27.7
P 9 5'
125.9
98.3'
276.0
11.0
265.0
262.6
2.4
159.1
25.2
1319
135.3
98.1
291.2
10.6
280.5
276.7
289.7
10.5
279.2
273.9
5.3
148.7
23.4
125.2
133.4
99.0
294.1
10.6
283.5
278.6
4.9
156.7
26.6
1301
120.9
97.6
295.8
10.8
285.0
282.5
157.2
26.9
1303
125.2
96.7
278.1
10.3
267.8
265.4
25
163.6
29.2
134.4
135.9
95.6
621.9
627.4
630.2
634.7
653.5
659.4'
668.4
6703
6733
670.7
6693
666.1
3.7
0.0
2.5
5.2
2.6
13.8
8.4
5.3
8.9
6.8
16.2
578.4
193.3
86.8
15.1
71.7
106.5
69.8
36.7
385.1
227.3
26.7
56.3
74.8
24.7
32.4
43.6
7.2
3.8
inn
26.7
56.3
76.1
24.7
33.2
42.8
2.5
160.5
28.5
1319
114.3
95.5
Not seasonally adjusted
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Assets
Bank credit
Securities in bank credit
U.S. government securities
Trading account
Investment account
Other securities
Trading account
Investment account
Loans and leases in bank credit2 .. .
Commercial and industrial
Real estate
Security1
Other loans and leases
Interbank loans
Cash assets4
Other assets5
42 Total assets 6
43
44
45
46
47
48
49
50
51
52
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the US
From others
Net due to related foreign offices
Other liabilities
53 Total liabilities
54 Residual (assets less liabilities)7
MEMO
55 Revaluation gains on off-balance-sheet
items6
56 Revaluation losses on off-balancesheet items 8
Footnotes appear on p. A21.
531.6
178.3
86.4
20.6
65.8
91.9
63 2
28.7
353.3
217.1
32.1
39.8
64.4
20.9
32.1
42.0
536.5
181.5
87.3
18.3
68.9
94.2
61.4
32.8
355.1
219.9
28.4
42.2
542.5
181.2
85.6
15.1
70.5
95.6
62.5
33.1
361.3
222.2
27.8
46.3
64.9
20.0
35.2
41.0'
551.1
195.1
85.7
17.6
68.1
109.4
69.6
39.8
356.0
18.0
34.3
43.4
535.4
180.7
86.7
17.2
69.5
94.0
61.4
32.6
354.6
220.7
28.0
43.0
63.0
18.0
34.7
42.4
574.2
194.4
81.6
15.5
66.1
112.8
72.4
40.4
379.8
226.3
27.0
54.5
71.9
27.5
33.1
43.6
579.5
198.0
87.5
16.2
71.3
110.5
72.1
38.4
381.5
226.7
26.9
54.5
73.5
24.3
32.4
43.0
582.4
203.6
91.5
23.4
68.2
112.1
74.7
37.3
378.8
226.7
27.2
52.2
72.7
23.8
31.8
42.3
579.6
197.3
84.9
13.3
71.6
112.4
73.1
39.3
382.3
27.3
41.1
65.2
23.1
36.5
45.2
554.5
192.0
81.7
15.8
65.9
110.3
70.3
40.0
362.5'
224.2'
26.6
44.6'
67.1'
30.7'
360
42.7'
27.0
56.9
73.1
26.6
33.2
43.4
574.7
195.7
82.2
11.3
70.9
113.5
73.7
39.8
379.0
225.9
26.9
53.5
72.6
25.6
31.9
42.4
6263
632.1
630.2
638.5
655.7
663.6'
678.1
678.9
680.0
682.6
6743
678.8
234.8
9^9
224.9
221.0
137.1
32.1
105.0
149.2
102.7
2612
10.9
250.3
247.8
2.5
142.6
31.7
110.9
128.7
96.4
264.6
11.2
253.3
250.8
2.5
144.2
34.9
109.3
124.1
93.9
268.8
105
258.3
255 8'
2.5
157.1
34.5
122.6
117.6
91.3
275.7
10.7
265.0
262.5'
2.5
159.8
30.5
129.3
117.6
97.7
->8l 0
11.2
269.8
">67.3
126.3
96.8'
276.2
11.1
265.1
262.7
2.4
155.6
26.1
129.4
145.0
97.0
287.3
10.9
276.4
272.7
3.7
150.5
75 2
125J
136.2
99.1
275.8
10.7
265.1
262.7
2.4
160.8
29.5
131.3
141.5
97.4
286.7
10.7
276.0
270.8
5.3
144.9
22.6
122.3
142.4
102.2
287.4
10.9
276.5
271.8
4.8
147.9
24.2
123.7
133.8
98.9
292.7
11.0
281.7
279.2
2.4
148.9
24.9
124.0
132.9
98.2
623.9
2.4
629.0
626.8
634.8
650.8
6593'
673.7
673.0
675.6
6763
668.1
672.8
3.0
3.4
3.7
4.9
4.3
4.3
5.8
4.4
6.2
6.2
6.1
46.3
41.5
41.2
39.8
41.8
40.9
42.1
40.1
41.0
40.2
40.4
39.9
48.0
43.1
41.8
40.1
41.9
41.6
42.5
40.4
41.3
40.8
41.0
40.1
3.9
646
222.4
2.5
155.2
28.2
mff
225.3
Commercial Banking Institutions—Assets and Liabilities A21
NOTES TO TABLE 1.26
NOTE. Tables 1.26, 1.27, and 1.28 have been revised to reflect changes in the Board's H.8
statistical release, "Assets and Liabilities of Commercial Banks in the United States." Table
1.27, "Assets and Liabilities of Large Weekly Reporting Commercial Banks," and table 1.28,
"Large Weekly Reporting U.S. Branches and Agencies of Foreign Banks," are no longer
being published in the Bulletin. Instead, abbreviated balance sheets for both large and small
domestically chartered banks have been included in table 1.26, parts C and D. Data are both
merger-adjusted and break-adjusted. In addition, data from large weekly reporting U.S.
branches and agencies of foreign banks have been replaced by balance sheet estimates of all
foreign-related institutions and are included in table 1.26, part E. These data are breakadjusted.
The not-seasonally-adjusted data for all tables now contain additional balance sheet items,
which were available as of October 2, 1996.
I. Covers the following types of institutions in the fifty states and the District of
Columbia: domestically chartered commercial banks that submit a weekly report of condition
(large domestic); other domestically chartered commercial banks (small domestic); branches
and agencies of foreign banks, and Edge Act and agreement corporations (foreign-related
institutions). Excludes International Banking Facilities. Data are Wednesday values or pro
rata averages of Wednesday values. Large domestic banks constitute a universe; data for
small domestic banks and foreign-related institutions are estimates based on weekly samples
and on quarter-end condition reports. Data are adjusted for breaks caused by reclassifications
of assets and liabilities.
The data for large and small domestic banks presented on pp. A17-19 are adjusted to
remove the estimated effects of mergers between these two groups. The adjustment for
mergers changes past levels to make them comparable with currenl levels. Estimated
quantities of balance sheet items acquired in mergers are removed from past data for the bank
group that contained the acquired bank and put into past daia for the group containing the
acquiring bank. Balance sheet data for acquired banks are obtained from Call Reports, and a
ratio procedure is used to adjust past levels.
2. Excludes federal funds sold to, reverse RPs with, and loans made to commercial banks
in the United States, all of which are included in "Interbank loans."
3. Consists of reverse RPs with brokers and dealers and loans to purchase and carry
securities.
4. Includes vault cash, cash items in process of collection, balances due from depository
institutions, and balances due from Federal Reserve Banks.
5. Excludes the due-from position with related foreign offices, which is included in "Net
due to related foreign offices."
6. Excludes unearned income, reserves for losses on loans and leases, and reserves for
transfer risk. Loans are reported gross of these items.
7. This balancing item is not intended as a measure of equity capital for use in capital
adequacy analysis. On a seasonally adjusted basis this item reflects any differences in the
seasonal patterns estimated for total assets and total liabilities.
8. Fair value of derivative contracts (interest rate, foreign exchange rate, other commodity and
equity contracts) in a gain/loss position, as determined under FASB Interpretation No. 39.
9. Includes mortgage-backed securities issued by U.S. government agencies, U.S.
government-sponsored enterprises, and private entities.
10. Difference between fair value and historical cost for securities classified as availablefor-sale under FASB Statement No. 115. Data are reported net of tax effects. Data shown are
restated to include an estimate of these tax effects.
11. Mainly commercial and industrial loans but also includes an unknown amount of credit
extended to other than nonfinancial businesses.
A22
1.32
Domestic Financial Statistics • May 1998
COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1997
Year ending December
1998
Item
1993
Dec.
1994
Dec.
1995
Dec.
1997
Dec.
1996
Dec.
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers
555,075
595382
674,904
775,371
9«6,699
885,601
908.640
921,769
940,524
966,699
973,761
218.947
180,389
223,038
207,701
275 815
210,829
361,147
229,662
513,307
252,536
437.340
253,934
475,792
235,030
483,489
237,544
483,475
249,781
513,307
252,536
509,950
254,926
155,739
164,643
188,260
184,563
200,857
194,327
197,818
200,736
207,268
200,857
208,886
1
2
3
Financial companies
Dealer-placed paper2, total
Directly placed paper^, total
4 Nonfinancial companies4
Bankers dollar acceptances (not seasonally adjusted)"'
5 Total
By holder
6 Accepting banks
7
Own bills
8
Bills bought from other banks
Federal Reserve Banks*"
9
Foreign correspondents
10 Others
By basis
11 Imports into United States
12 Exports from United States
13 All other
32,348
29,835
29, 242
12,421
10,707
1,714
11,783
10,462
1,321
i
725
19,202
410
17.642
n
10,217
7,293
14,838
10,062
6,355
13,417
25, 754
1 1
a.
n
1. Institutions engaged primarily in commercial, savings, and mortgage banking; sales.
personal, and mortgage financing; factoring, finance leasing, and other business lending:
insurance underwriting; and other investment activities.
2. Includes all financial-company paper sold by dealers in the open market.
3. As reported by financial companies that place their paper directly with investors.
4. Includes public utilities and firms engaged primarily in such activities as communications, construction, manufacturing, mining, wholesale and retail trade, transportation, and
services.
1.33
PRIME RATE CHARGED BY BANKS
t
a.
n a.
n a.
n a.
n a.
n a.
n a.
n a.
5. Data on bankers dollar acceptances are gathered from approximately 100 institutions.
The reporting group is revised every January. Beginning January 1995, data for Bankers
dollar acceptances are reported annually in September.
6. In 1977 the Federal Reserve discontinued operations in bankers dollar acceptances for
ils own account.
Short-Term Business Loans1
Percent per year
Date of change
Rate
1995—Jan. 1
Feb. 1
July 7
Dec. 20
8.50
9.00
8.75
8.50
1996—Feb.
1
8.25
1997_Mar. 26
8.50
Period
Average
rate
1995
1996
1997
8.83
8.27
8.44
1995—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
8.50
9.00
9.00
9.00
9.00
9.00
8.80
8.75
8.75
8.75
8.75
8.65
1. The prime rate is one of several base rates that banks use to price short-term business
loans. The table shows the date on which a new rate came to be the predominant one quoted
by a majority of ihe twenty-five largest banks by asset size, based on the most recent Call
Period
1996—Jan
Feb
Mar.
Apr
Mav
June
July
Aug
Sept
Oct
Nov
Dec
Average
rate
8.50
8.25
8.25
8.25
8.25
8.25
8.25
8.25
8.25
8.25
8.25
8.25
Period
Average
rate
1997—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
8.25
8.25
8.30
8.50
8.50
8.50
8 50
8.50
8.50
8.50
8.50
8.50
1998—Jan
Feb
Mar.
8.50
8.50
8.50
Report. Data in this table also appear in the Board's H.I5 (519) weekly and G.13 (415)
monthly statistical releases. For ordering address, see inside front cover.
Financial Markets A23
1.35
INTEREST RATES
Money and Capital Markets
Percent per year; figures are averages of business day data unless otherwise noted
1997
Item
1995
1996
1998
1998, week ending
1997
Nov.
Dec.
Jan.
Feb.
Jan. 30
Feb. 6
Feb. 13
Feb. 20
Feb. 27
MONEY MARKET INSTRUMENTS
1 Federal funds'- 2J
2 Discount window borrowing24
Commercial
paper
5.83
5.21
5.30
5.02
5.46
5.00
5.52
5.00
5.50
5.00
5.56
5.00
5.51
5.00
5.53
5.00
5.52
5.00
5.43
5.00
5.54
5.00
5.51
5.00
n.a.
n.a.
n.a.
n.a.
5.57
5.57
5.56
5.53
5.59
5.60
5.78
5.71
5.67
5.46
5.44
5.42
5.47
5.44
5.42
5.47
5.43
5.40
5.46
5.43
5 41
5.47
5.43
5 41
5.46
5.44
5 42
5.49
5.47
5.44
•4"3"6
3
4
5
Nonfinancial
1-month
2-month
3-month
6
7
8
Financial
1 -month
2-month
3-month
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
5.59
5.59
5.60
5.55
5.65
5.64
5.80
5.72
5.70
5.48
5.46
5.44
5.49
5.47
5.45
5.48
5.44
5.44
5.48
5.46
5.44
5.48
5.46
5.44
5.49
5.47
5.45
5.50
5.50
5.47
Commercial paper (historical) " 'b'
1-month
3-month
6-month
5.93
5.93
5.93
5.43
5.41
5.42
5.54
5.58
5.62
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
5.81
5.78
5 68
5.31
5.29
5.21
5.44
5.48
5.48
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
9
10
11
Finance paper, directly placed
12
13
14
(historical)3^-7-8
1-month
3-month
6-month
15
16
Banters acceptances^^'9
3-month
6-month
581
5.80
5.31
5.31
5.54
5.57
5.66
5.63
5.75
5.68
5.48
5.45
5.46
5.41
5.47
5.44
5.47
5.42
5.45
5.39
5.45
5.38
5.48
5.44
17
18
19
Certificates of deposit, secondary marker*'™
1 -month
3-month
6-month
5.87
5.92
5.98
5.35
5.39
5.47
5.54
5.62
5.73
5.61
5.74
5.78
5.88
5.80
5.82
5.53
5.54
5.56
5.53
5.54
5.55
5.53
5.53
5.54
5.52
5.53
5.53
5.53
5.53
5.54
5.53
5.53
5.54
5.55
5.56
5.58
5.93
5.38
5.61
5.71
5.79
5.53
5.53
5.51
5.52
5.52
5.53
5.54
5.49
5.56
5.60
5.01
5.08
5.22
5.06
5.18
5.32
5.14
5.17
5.17
5.16
5.24
5.24
5.04
5.03
4.98
5.09
5.07
5.04
5.06
5.06
5.01
5.05
5.04
4.99
5.07
5.04
5.01
5.06
5.08
5.02
5.16
5.11
5.14
5.51
5.59
5.69
5.02
5.09
5.23
5.07
5.18
5.36
5.15
5.17
5.14
5.16
5.24
5.18
5.09
5.07
5.07
5.11
5.07
4.97
5.07
5.03
n.a.
5.10
5.09
4.97
5.10
5.08
n.a.
5.08
5.07
n.a.
5.14
5.04
n.a.
5.94
6.15
6.25
6.38
6.50
6.57
6.95
6.88
5.52
5.84
5.99
6.18
6.34
6.44
6.83
6.71
5.63
5.99
6.10
6.22
6.33
6.35
6.69
6.61
5.46
5.71
5.76
5.80
5.90
5.88
6.20
6.11
5.53
5.72
5.74
5.77
5.83
5.81
6.07
5.99
5.24
5.36
5.38
5.42
5.53
5.54
5.88
5.81
5.31
5.42
5.43
5.49
5.60
5.57
5.96
5.89
5.28
5.40
5.43
5.48
5.60
5.63
5.96
5.89
5.26
5.35
5.38
5.44
5.58
5.59
5.96
5.89
5.28
5.39
5.41
5.47
5.59
5.57
5.96
5.89
5.28
5.38
5.38
5.45
5.55
5.50
5.90
5.84
5.42
5.54
5.55
5.60
5.69
5.63
6.00
5.94
6.93
6.80
6.67
6.18
6.06
5.87
5.94
5.95
5.94
5.94
5.88
5.99
5.80
6.10
5.95
5.52
5.79
5.76
5.32
5.50
5.52
5.19
5.32
5.33
5.03
5.17
5.19
4.88
5.04
5.06
4.92
5.09
5.10
4.92
5.08
5.11
4.90
5.07
5.11
4.90
5.05
5.08
4.91
5.07
5.07
4.95
5.16
5.14
7.83
7.66
7.54
7.13
7.03
6.89
6.95
6.97
6.96
6.97
6.93
6.99
7.59
7.72
7.83
8.20
7.86
7.37
7.55
7.69
8.05
7.77
7.27
7.48
7.54
7.87
7.71
6.87
7.07
7.15
7.42
7.24
6.76
6.99
7.05
7.32
7.10
6.61
6.82
6.93
7.19
6.97
6.67
6.88
7.01
7.25
7.02
6.70
6.89
7.02
7.28
6.96
6.68
6.87
7.02
7.27
7.07
6.69
6.89
7.02
7.27
6.99
6.62
6.84
6.96
7.20
7.00
6.71
6.92
7.04
7.28
7.08
2.56
2.19
1.77
1.65
1.62
1.62
1.55
1.61
1.57
1.55
1.54
1.53
20 Eurodollar deposits, 3-month3"11
24
25
26
US. Treasury bills
Secondary market3'5
3-month
6-month
1-year
Auction average3-5-12
3-month
6-month
1-year
27
28
29
30
31
32
3^
M
Constant maturities1
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year
21
22
23
U.S. TREASURY NOTES AND BONDS
Composite
35 More than 10 years (long-term)
STATE AND LOCAL NOTES AND BONDS
Moody's series1*
36 Aaa
37 Baa
38 Bond Buyer series15
CORPORATE BONDS
39 Seasoned issues, all industries16
40
41
42
43
44
Rating group
Aaa
Aa
A
Baa
A-rated, recendy offered utility bonds17
MEMO
Dividend-price ratio
45 Common stocks
1. The daily effective federal funds rate is a weighted average of rates on trades through
New York brokers.
2. Weekly figures are averages of seven calendar days ending on Wednesday of the
current week; monthly figures include each calendar day in the month.
3. Annualized using a 360-day year for bank interest.
4. Rate for the Federal Reserve Bank of New York.
5. Quoted on a discount basis.
6. An average of offering rates on commercial paper placed by several leading dealers for
firms whose bond rating is AA or the equivalent.
7. Series ended August 29, 1997.
8. An average of offering rates on paper directly placed by finance companies.
9. Representative closing yields for acceptances of the highest-rated money center banks.
10. An average of dealer offering rates on nationally traded certificates of deposit.
11. Bid rates for Eurodollar deposits at approximately 11:00 a.m. London time. Data are
for indication purposes only.
Digitized for
12. FRASER
Auction date for daily data; weekly and monthly averages computed on an issue-date
basis.
http://fraser.stlouisfed.org/
Federal Reserve Bank of St. Louis
13. Yields on actively traded issues adjusted to constant maturities. Source: U.S. Department of the Treasury.
14. General obligation bonds based on Thursday figures; Moody's Investors Service.
15. State and local government general obligation bonds maturing in twenty years are used
in compiling this index. The twenty-bond index has a rating roughly equivalent to Moodys'
Al rating. Based on Thursday figures.
16. Daily figures from Moody's Investors Service. Based on yields to maturity on selected
long-term bonds.
17. Compilation of the Federal Reserve. This series is an estimate of the yield on recently
offered, A-rated utility bonds with a thirty-year maturity and five years of call protection.
Weekly data are based on Friday quotations.
18. Standard & Poor's corporate series. Common stock ratio is based on the 500 stocks in
the price index.
NOTE. Some of the data in this table also appear in the Board's H.15 (519) weekly and
G. 13 (415) monthly statistical releases. For ordering address, see inside front cover.
A24
1.36
Domestic Financial Statistics • May 1998
STOCK MARKET
Selected Statistics
1998
1997
Indicator
1996
1995
1997
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Prices and trading volume (averages of daily figures)
Common stock prices (indexes)
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
2
Industrial
291.18
367.40
270.14
110.64
238.48
357.98
453.57
327.30
126.36
303.94
456.99
574.97
415.08
143.87
424.84
457.07
578.57
410.93
140.24
419.12
480.94
610.42
433.75
144.25
441.59
482.39
609.54
439.71
143.82
446.93
489.74
617.94
451.63
145.96
459.86
499.25
625.22
466.04
157.83
476.70
492.14
615.65
453.56
153.53
465.35
504.66
623.57
461.04
165.74
490.30
504.13
624.61
458.49
146.25
479.81
532.15
660.91
485.73
170.96
508.97
6 Standard & Poor's Corporation
(1941-43 = 10)J
541.72
670.49
873.43
876.29
925.29
927.74
937.02
951.16
938.92
962.37
963.36
1,023.74
7 American Stock Exchange
(Aug. 31. 1973 = 50)3
498.13
570.86
628.34
619.94
635.28
645.59
678.05
702.43
674.37
667.89
665.72
685.73
345,729
20,387
409,740
22.567
523,254
n.a.
516,241
23,277
543,006
25,562
506,205
24,095
541,204
28,252
606,513
32,873
531,449
27,741
541,134
27.624
632,895
28.199
610,958
26,808
4
Utility
Volume of trading (thousands of shares)
8 New York Slock Exchange
9 American Stock Exchange
Customer financing (millions of dollars, end-of-period balances)
10 Margin credit at broker-dealers4
76,680
97,400
126,090
113,440
116,190
119,810
126,050
128,190
127,330
126,090
127,790
135,590
16,250
34,340
22,540
40,430
31,410
52,160
23,860
41,840
24,290
43,985
23,375
42,960
23,630
43,770
26,950
47,465
26,735
45,470
31,410
52.160
29,480
48.620
27,450
48,640
Free credit balances at brokers5
Margin requirements (percent of market value and effec lve date)7
13 Margin stocks
Mar. 11, 1968
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
1. Daily data on prices are available upon request to the Board of Governors. For ordering
address, see inside front cover.
2. In July 1976 a financial group, composed of banks and insurance companies, was added
to the group of stocks on which the index is based. The index is now based on 400 industrial
stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and
40 financial.
3. On July 5, 1983, the American Stock Exchange rebased its index, effectively cutting
previous readings in half.
4. Since July 1983, under the revised Regulation T, margin credit at broker-dealers has
included credit extended against stocks, convertible bonds, stocks acquired through the
exercise of subscription rights, corporate bonds, and government securities. Separate reporting of data for margin stocks, convertible bonds, and subscription issues was discontinued in
April 1984.
5. Free credit balances are amounts in accounts with no unfulfilled commitments to
brokers and are subject to withdrawal by customers on demand.
Jan. 3, 1974
50
50
50
6. Series initiated in June 1984.
7. Margin requirements, stated in regulations adopted by the Board of Governors pursuant
to the Securities Exchange Act of 1934, limit the amount of credit that can be used to
purchase and carry "margin securities" (as defined in the regulations) when such credit is
collateralized by securities. Margin requirements on securities are the difference between the
market value (100 percent) and the maximum loan value of collateral as prescribed by the
Board. Regulation T was adopted effective Oct. 15, 1934; Regulation U, effective May 1,
1936; Regulation G, effective Mar. 11, 1968; and Regulation X, effective Nov. 1, 1971.
On Jan. 1, 1977, the Board of Governors for the first time established in Regulation T the
initial margin required for writing options on securities, setting it at 30 percent of the current
market value of the stock underlying the option. On Sept. 30, 1985, the Board changed the
required initial margin, allowing it to be the same as the option maintenance margin required
by the appropriate exchange or self-regulatory organization; such maintenance margin rules
must be approved by the Securities and Exchange Commission.
Federal Finance A25
1.38
FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Fiscal year
Calendar year
Type of account or operation
1995
Sept.
US. budget'
1 Receipts, total
2
On-budget
3
Off-budget
4 Outlays, total
5
On-budget
6
Off-budget
7 Surplus or deficit ( - ) , total .
8
On-budget
9
Off-budget
Source of financing (total)
10 Borrowing from the public
11 Operating cash (decrease, or increase ( - ) ) . . .
12 Other 2
114,898
103,481
73,690
29,791
120,830
91,327
29,504
-17,349
-17,637
287
6,289
20,261
4,616
15,645
1,351,830
1.000,751
351,079
1,515,729
1.227,065
288,664
-163,899
-226,314
62,415
1,453,062
1,085,570
367,492
1.560,512
1,259,608
300,904
-107,450
-174,038
66,588
1,579,292
1,187,302
391,990
1,601,235
1,290.609
310,626
-21,943
-103.307
81,364
174,772
138,849
35,923
124,831
91,406
33,429
49.937
47,443
2.494
171,288
-2,007
-5,382
129,712
-6,276
-15,986
38,171
604
-16,832
-18.318
-31,545
-74
23,360
37,949
8,620
29.329
44,225
7,700
36,525
43,621
7,692
35,930
43,621
7,692
35,930
87.083
27,815
150,866
123,863
26,999
-35,964
-36,780
816
6,315
167,998
135,340
32,658
7,712
13.639
-11,307
24.946
162,610
123,367
39,243
137,231
108,843
28,388
25,379
14,524
10,855
65,051
32,901
139,701
109,393
30.309
-41,750
-44,342
2,592
29,108
483
-12,242
-1,771
-12,107
239
-24,807
-8,422
7,850
30,565
24,027
-12,842
19,778
5,127
14,651
31,885
5,444
26.441
40,307
5,552
16,280
5,037
11,243
154,359
146.647
97,952
MEMO
13 Treasury operating balance (level, end of
period)
14
15
Federal Reserve Banks
Tax and loan accounts
1. Since 1990, off-budget items have been the social security trust funds (federal old-age
survivors insurance and federal disability insurance) and the U.S. Postal Service.
2. Includes special drawing rights (SDRs); reserve position on the U.S. quota in the
International Monetary Fund (IMF); loans to the IMF; other cash and monetary assets;
accrued interest payable to the public; allocations of SDRs; deposit funds; miscellaneous
liability (including checks outstanding) and asset accounts; seigniorage; increment on gold;
34,756
net gain or loss for U.S. currency valuation adjustment; net gain or loss for IMF loanvaluation adjustment; and profit on sale of gold.
SOURCE. Monthly totals; U.S. Department of the Treasury. Monthly Treasury Statement of
Receipts and Outlays of the U.S. Government; fiscal year totals: U.S. Office of Management
and Budget, Budget of the U.S. Government.
A26
1.39
Domestic Financial Statistics • May 1998
U.S. BUDGET RECEIPTS AND OUTLAYS1
Millions of dollars
Fiscal year
Calendar year
Source or type
1996
RECEIPTS
1 All sources
2 Individual income taxes, net
3
Withheld
4
Nonwithheld
5
Refunds
Corporation income taxes
6
Gross receipts
7
Refunds
8 Social insurance taxes and contributions, net
9
Employment taxes and contributions"
10 Unemployment insurance
11 Other net receipts3
12
13
14
15
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts4 . .
1,453,062
1,579,292
767,099
707,551
845,527
773,810
167,998
162,610
97,952
656,417
533,080
212,168
88,897
737,466
580,207
250,753
93,560
347,285
•264,177
162,782
79,735
323,884
279,988
53,491
9.604
400,435
292,252
191,050
82,926
354,072
306,865
58,069
10,869
69,060
64,604
5,240
784
95,798
56,628
40,039
870
42,209
54,225
2,914
14,941
189,055
17,231
509,414
476,361
28,584
4,469
204,493
22,198
539,371
506,751
28.202
4,418
96.480
9,704
277,767
257,446
18,068
2,254
95,364
10,053
240,326
227,777
10,302
2,245
106,451
9,635
288,251
268,357
17,709
2,184
104,659
10,135
260,795
247,794
44,973
936
45,149
44,297
425
427
54,014
18,670
17,189
25,534
56,924
17,928
19,845
25.465
25,682
8,731
8,775
12,087
27,016
9,294
8,835
12,888
28,084
8,619
10,477
12,866
31,132
9.679
10,262
6,888
2,481
3,598
51,765
50,395
1,036
333
44,749
41,825
2,589
335
13,347
5,167
1,416
1,498
1,671
4,679
1,387
1,808
2,768
4,791
1,454
1,500
2,420
10,724
2,280
2,769
OUTLAYS
1,560,512
1,601,235
785^68
800,176
797,418
824360
154359
137,231
139,701
17
18
19
20
21
22
National defense
International affairs
General science, space, and technology
Energy
Natural resources and environment
Agriculture
265,748
13,496
16,709
2,844
21,614
9,159
270,473
15,228
17,174
1,483
21,369
9.032
132,599
8,076
8,897
1,356
10,254
73
139,402r
8,532r
8,260
695r
10,307r
11.037r
132,725r
5,740r
8,939
803r
9,627r
1.465r
140,873 r
9,420 r
10,040
41lr
ll.l()6r
IO,59Or
27,228r
4,5O3r
1,899
-267
2,386r
2,875r
20.927 r
740 r
20.492
364
1,404
-43
23
24
25
26
Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, and
social services
-10,472
39,565
10,685
-14,624
40,767
11,005
-6,885
18,290
5,245
-5,899
21,5l2r
5,498
-7,575
16,847'
5,674r
-3,526
20,414'
5,749 r
-1,144
3,400 r
-403
2,574r
783
-1,065
2,504
843
52,001
53,008
25,979
27,524r
25,O8Or
26,85 l r
4,681 r
5,042r
6.535
27 Health
28 Social security and Medicare
29 Income security
119,378
523,901
225,989
123,843
555,273
230,886
59,989
264.647
121,186
61,595
269.412
107,63 lr
61.808
278.862r
124,034r
63,552
283,109
106,353r
11,159
50,500
19.962r
11,162
46,929
20,133'
9.735
46.SI0
28,194
30
31
32
33
34
36,985
17,548
11,892
241,090
-37,620
39,313
20.197
12,768
244,013
-49,973
18,140
9,015
4,641
120,576
-16,716
21,109
9,583
6,546
122,573
-25,142
17,696
22,077
l(),212r
7,302r
122,620
-22,795
4,931
2,051
2,504
20,480
-3,629
3,331
1,718
836
20,570
-2.504
3,386
16 All types
Veterans benefits and services
Administration of justice
General government
Net interest5
Undistributed offsetting receipts6
1. Functional details do not sum to total outlays for calendar year data because revisions to
monthly totals have not been distributed among functions. Fiscal year total for receipts and
outlays do not correspond to calendar year data because revisions from the Budget have not
been fully distributed across months.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Federal employee retirement contributions and civil service retirement and
disability fund.
10,643
6,623r
I22,654r
-24,234
1,498
291
l,636r
1,967r
1,746
329
669
2,026
108
19.901
-3.394
4. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
5. Includes interest received by trust funds.
6. Rents and royalties for the outer continental shelf, U.S. government contributions for
employee retirement, and certain asset sales.
SOURCE. Fiscal year totals: U.S. Office of Management and Budget, Budget of the U.S.
Government, Fiscal Year ]999\ monthly and half-year totals: U.S. Department of the Treasury, Monthly Treasury Statement of Receipts and Outlays of the U.S. Government.
Federal Finance
All
1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars, end of month
1995
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
1 Federal debt outstanding
5,017
5,153
5,197
5,260
5357
5,415
5,410
5,446
5,536
2 Public debt securities
3
Held by public
4
Held by agencies
4,989
3,684
1,305
5,118
3,764
1,354
5,161
3,739
1,422
5,225
3,778
1,447
5,323
3,826
1,497
5,381
3,874
1,507
5,376
3,805
1,572
5,413
3,815
1,599
5,502
3,847
1,656
28
28
0
36
28
36
35
27
34
27
34
26
34
26
7
33
26
7
34
27
7
4,900
5,030
5,073
5,137
5,237
5,294
5,290
5^28
5,417
4,900
0
5,030
0
5,073
0
5,137
0
5,237
0
5,294
0
5,290
0
5,328
0
5,416
0
4,900
5,500
5,500
5,500
5,500
5,500
5,950
5,950
5 Agency securities
6
Held by public
7
Held by agencies
8 Debt subject to statutory limit
9 Public debt securities
10 Other debt1
MEMO
11 Statutory debt limit
1. Consists of guaranteed debt of U.S. Treasury and other federal agencies, specified
participation certificates, notes to international lending organizations, and District of Columbia stadium bonds.
1.41
GROSS PUBLIC DEBT OF US. TREASURY
SOURCE. U.S. Department of the Treasury, Monthly Statement of the Public Debt of the
United States and Treasury Bulletin.
Types and Ownership
Billions of dollars, end of period
Type and holder
1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13
14
15
By type
Interest-bearing
Marketable
Bills
Notes
Bonds
Inflation-indexed notes1
Nonmarketable2
State and local government series
Foreign issues*
Government
Public
Savings bonds and notes
Government account series
Non-interest-bearing
1994
1995
1996
Ql
Q2
Q3
Q4
4,800.2
4,988.7
5323.2
5,502.4
5380.9
5376.2
5,413.2
5,502.4
4,769.2
3,126.0
733.8
1,867.0
510.3
n.a.
1,643.1
132.6
42.5
42.5
.0
4,964.4
3,307.2
760.7
5,317.2
3,459.7
777.4
2,112.3
555.0
n.a.
1,857.5
101.3
37.4
47.4
.0
182.4
5,494.9
3,456.8
715.4
2,106.1
587.3
33.0
2,038.1
124.1
36.2
36.2
.0
181.2
1,666.7
7.5
5,375.1
3,504.4
785.6
2,131.0
5,370.5
565.4
7.4
5.8
565.4
15.9
1,937.4
107.9
35.4
35.4
.0
182.7
1,581.5
5.7
5,407.5
3,439.6
701.9
2,122.2
576.2
24.4
1,967.9
111.9
34.9
34.9
.0
182.7
1,608.5
5.6
5,494.9
3,456.8
715.4
2,106.1
587.3
33.0
2,038.1
124.1
36.2
36.2
.0
181.2
1,666.7
7.5
2,010.3
3,433.1
704.1
2,132.6
1,259.8
31.0
521.2
n.a.
1,657.2
104.5
40.8
40.8
.0
181.9
1,299.6
24.3
1,257.1
374.1
3,168.0
290.4
67.6
240.1
224.5
540.2
1,304.5
391.0
3,294.9
278.7
71.5
241.5
228.8
421.5
1,497.2
410.9
3,411.2
261.7
91.6r
214.1
258.5
363.7r
1,655.7
451.9
3,393.4
260.01"
87.8r
214.0r
265.0
334.0r
1,506.8
405.6
3,451.7
282.3
84.0
214.3
262.5
348.0
1,571.6
426.4
3,361.7
265.7
77.4
216.0*
261.0
345.3r
1,598.5
436.5
3,388.9
261.6r
75.8r
214.4r
266.5
336.4r
1,655.7
451.9
3,393.4
260.0
87.8
214.0
265.0
334.0
180.5
150.7
688.6
785.5
185.0
162.7
862.2
843.0r
187.0
169.6
l,131.8r
733.2r
186.5
168.4
l,278.2r
599.4r
186.5
168.9
1,192.0"
713.2r
186.3
169.1
l,221.7r
619.2r
186.2
168.6
l,266.8 r
612.6r
186.5
168.4
1,278.2
599.4
177.8
1,505.9
6.0
1,870.8
104.8
36.8
36.8
.0
182.6
1,516.6
5
16
17
18
19
20
21
22
23
24
25
26
27
By holder
U.S. Treasury and other federal agencies and trust funds
Federal Reserve Banks
Private investors
Commercial banks
Money market funds
Insurance companies
Other companies
State and local treasuries 67
Individuals
Savings bonds
Other securities
Foreign and international8
Other miscellaneous investors '
1. The U.S. Treasury first issued inflation-indexed notes during the first quarter of 1997.
2. Includes (not shown separately) securities issued to the Rural Electrification Administration, depository bonds, retirement plan bonds, and individual retirement bonds.
3. Nonmarketable series denominated in dollars, and series denominated in foreign currency held by foreigners.
4. Held almost entirely by U.S. Treasury and other federal agencies and trust funds.
5. Data for Federal Reserve Banks and U.S. government agencies and trust funds are actual
holdings; data for other groups are Treasury estimates.
6. Includes state and local pension funds.
7. In March 1996, in a redefinition of series, fully defeased debt backed by nonmarketable
federal securities was removed from "Other miscellaneous investors" and added to "State and
local treasuries." The data shown here have been revised accordingly.
8. Consists of investments of foreign balances and international accounts in the United
States.
9. Includes savings and loan associations, nonprofit institutions, credit unions, mutual
savings banks, corporate pension trust funds, dealers and brokers, certain U.S. Treasury
deposit accounts, and federally sponsored agencies.
SOURCE. U.S. Treasury Department, data by type of security, Monthly Statement of the
Public Debt of the United States; data by holder, Treasury Bulletin.
A28
1.42
Domestic Financial Statistics • May 1998
U.S. GOVERNMENT SECURITIES DEALERS
Transactions'
Millions of dollars, daily averages
1997
1998
1997.
week
ending
Jan.
Dec. 31
Item
Nov.
Dec.
1998, week ending
Jan. 7
Jan. 14
Jan. 21
Jan. 28
Feb. 4
Feb. 11
Feb. 18
Feb. 25
OUTRIGHT TRANSACTIONS 2
By type of security
1 U.S. Treasury bills
Coupon securities, by maturity
2 Five years or less
3
More than five years
4 Federal agency
6
7
8
9
11
By type of counterparty
With interdealer broker
U.S. Treasury
Federal agency
Mortgage-backed
U.S. Treasury
Mortgage-backed
43,506
38,244
39,909
29,390
42,416
40,994
37,381
38,845
42.516
38,754
40,062
38,841
118,847
68,164
48,097
63 657
95,901
54,749
43,015
45 285
137,268
72,617
46,606
73 758
59,127
30,326
38.475
17 590
128,295
79,357
46,582
61 292
153.884
92.992
48,175
94 472
124,469
64,302
50,166
68 029
142,424
73,818
41,499
71,237
119.673
84,007
45,650
64,141
115,005
85,646
38,861
76,389
96,774
81,756
44,391
60,203
144,026
80,096
47,470
59,363
132,153
1,250
19,089
107,366
1,143
13,748
94,063
1,750
16,441
59,126
567
6,110
137,234
1,572
19,908
161,913
2.521
28,462
130,689
1,398
26,718
149,055
1,510
24,645
141,253
1,710
21,494
137,698
2,125
24,869
121,505
1,653
20,000
150,835
2.205
19,274
98,365
46,847
44,569
81,528
41,873
31,538
73,148
44,858
33,042
59,717
37,908
11,480
112,834
45,010
41,384
125,957
45,654
66.010
95,462
48,768
41,311
106,587
39,989
46,592
105,241
43,940
42,647
102,181
36,736
51,520
97,340
42,738
40,203
112,916
45,265
40,089
FUTURES TRANSACTIONS 3
By type of deliverable security
12 U.S. Treasury bills
Coupon securities, by maturity
13 Five years or less
14 More than five years
15 Federal agency
16 Mortgage-backed
262
2,041'
16,939'
0
0
404
165
352
226
367
138
120
258
401
77
225
2,534'
13,394'
0
0
2,107
11,345
0
0
1,465
5,783
0
0
4,304
17,724
0
0
3,201
20,089
0
0
2,229
13,888
0
0
2,318
17,318
0
0
1,946
15,655
0
0
1,400
13,897
0
0
1,662
15,610
0
0
4,049
18,522
0
0
OPTIONS TRANSACTIONS 4
By type of underlying security
17 U S Treasury bills
Coupon securities, by maturity
20 Federal agency
21 Mortgage-backed
0
1,674
6.353'
0
549
0
0
(I
0
0
0
0
0
0
0
0
1,831
4,487'
0
632
2,173
3,742
0
428
640
2,470
0
90
1,807
7.903
0
515
4,799
5.460
0
737
3,061
3,983
0
706
2,099
6,588
0
600
2.856
5,091
0
622
2,588
5,288
0
330
1,878
5,160
0
739
2,885
8,494
n.a.
881
1. Transactions are market purchases and sales of securities as reported to the Federal
Reserve Bank of New York by the U.S. government securities dealers on its published list of
primary dealers. Monthly averages are based on the number of trading days in the month.
Transactions are assumed to be evenly distributed among the trading days of the report week.
Immediate, forward, and futures transactions are reported at principal value, which does not
include accrued interest; options transactions are reported at the face value of the underlying
securities.
Dealers report cumulative transactions for each week ending Wednesday.
2. Outright transactions include immediate and forward transactions. Immediate delivery
refers to purchases or sales of securities (other than mortgage-backed federal agency securities) for which delivery is scheduled in five business days or less and "when-issued"
securities thai settle on the issue date of offering. Transactions for immediate delivery of mortgagebacked agency securities include purchases and sales for which deliveiy is scheduled in thirty business
days or less. Stripped securities arereportedat maiicet value by maturity of coupon or corpus.
Forward transactions are agreements made in the over-the-counter market that specify
delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt
securities are included when the time to delivery is more than five business days. Forward
contracts for mortgage-backed agency securities are included when the time to delivery is
more than thirty business days.
3. Futures transactions are standardized agreements arranged on an exchange. All futures
transactions are included regardless of time to delivery.
4. Options transactions are purchases or sales of put and call options, whether arranged on
an organized exchange or in the over-the-counter market, and include options on futures
contracts on U.S. Treasury and federal agency securities.
NOTE, "n.a." indicates that data are not published because of insufficient activity.
Major changes in the report form filed by primary dealers induced a break in the dealer data
series as of the week ending January 28, 1998.
Federal Finance
1.43 U.S. GOVERNMENT SECURITIES DEALERS
A29
Positions and Financing'
Millions of dollars
1997, week
ending
Dec. 31
1998, week ending
Jan. 7
Feb. 11
Positions
NET OUTRIGHT POSITIONS 3
fiv type of security
1 U.S. Treasury bills
Coupon securities, by maturity
2 Five years or less
.1 More than tive years
4 Federal agency
5 Mortgage-backed
18,776
18.205
13,067
8,400
19.343
14,900
12,871
5,154
7.900
4,244
14,147
-17,008
-18,763
28.049
37.409
-21,352
-16,759
26,328
-19.785
-16,484
17,499
42,503
-14,528
-13,393
-15.515
-15,037
38,266
48,880
-14,543
-19,897
39,389
49,783
-7,108
-20,561
37,830
42,751
-9.565
-15,096
37,380
47,110
-6,257
44,132
-12,393
-17,753
36,230
46,945
35.994
57,244
-6,557
-20,445
33,310
52,185
-3.141
-2,635
-3,541
-3,203
-3,182
-3,367
-3,448
-4,165
-4,027
-4,904
-4,891
2,358
-20,650
0
0
3,580
-27,083
0
0
-1,715
-26,187
0
0
1,768
-29.043'
0
0
-4,216
-1,979
-29,805
0
0
-27.645
0
0
-253
-27,138
0
0
-410
-20,159
0
0
-2,909
-21,845
0
0
-2,667
-20.163
0
0
-22,654
0
0
0
0
0
0
2,234
3,838
-757
3,224
n.a.
869
-586
3,003
n.a.
782
-1,117
3,515
n.a.
841
78
3.200
n.a.
203
-653
2,132
n.a.
860
-1,253
3,202
-1,027
2,169
-1.246
3,356
29.434
46.366
-21.399
NET FUTURES POSITIONS 4
fiv type of deliverable security
6 U.S. Treasury bills
.'
Coupon securities, by maturity
7
Five years or less
8
More than five years
9 Federal agency
10 Mortgage-backed
-1,554
NET OPTIONS POSITIONS
11
12
13
14
15
Bv type of deliverable security
U.S. Treasury bills
Coupon securities, by maturity
Five years or less
More than five years
Federal agency
Mortgage-backed
0
-1,551
2,831r
n.a.
1,001
0
-652
3,163
n.a.
1,222
-50
Financing"
Reverse repurchase agreements
Overnight and continuing
Term
328,976
688.464
304,385
654,600
324,675
746,498
306,496
571,315
322.402
670,529
337,041
738,725
324,835
770,417
314,422
806.323
350,352
786,654
329.281
848.506
374,844
626,731
Securities borrowed
Overnight and continuing
Term
201,701
94,469
200,401
92,672
214,756
209,303
85,073
217,021
87,774
219,985
89,083
212,852
89,364
209,166
89.298
212,450
84,324
213,321
82,349
218,106
76,158
Securities received as pledge
Overnight and continuing . . .
Term
6,306
99
5,939
286
5,127
n.a.
5,827
n.a.
5,511
137
5,396
n.a.
5,165
n.a.
4,435
166
4,502
165
4,445
261
4,357
267
Repurchase agreements
Overnight and continuing .. .
Term
679,506
629,143
648,786
586,741
715,197
656,432
600,427
528,672
700,774
579.576
733,257
650,443
720,141
677,327
706,615
718,382
733,169
701,852
728,930
744.488
768,739
550,147
Securities loaned
Overnight and continuing
Term
7,759
3,828
7,927
4,591
8,157
4,645
7.435
6.244
8.336
4,745
8,594
4,871
7,905
4,493
7,794
4,471
8,446
4.430
8.573
4,113
8,593
3,481
Securities pledged
Overnight and continuing
Term
50.941
2.741
53,643
3,566
52,182
5.019
65,507
4,956
54.835
4.694
51,136
4,682
51,851
4,642
50,907
6,057
51,715
5,235
54.489
4.703
59,232
1,087
n.a.
n.a.
14,645
13.891
n.a.
n.a.
14,467
n.a.
n.a.
10,563
n.a.
18,077
15,341
n.a.
12,957
n.a.
n.a.
11,494
n.a.
n.a.
11,896
10.541
n.a.
7,304
MEMO: Matched book6
Securities in
Overnight and continuing .
Term
300,635
662.654
284,089
623,240
n.a.
n.a.
287,031
530,605
306,066
643,071
324,775
697,823
313,439
717,775
Securities out
Overnight and continuing ,
Term
386,203
544,801
374,312
495,105
n.a.
n.a.
357,812
436,403
409,321
506,290
421,397
557,999
413,707
578,296
Collateralized loans
Overnight and continuing
Term
Total
1. Data for positions and financing are obtained from reports submitted to the Federal
Reserve Bank of New York by the U.S. government securities dealers on its published list of
primary dealers. Weekly figures are close-of-business Wednesday data. Positions for calendar
days of the report week are assumed to be constant. Monthly averages are based on the
number of calendar days in the month.
2. Securities positions are reported at market value.
3. Net outright positions include immediate and forward positions. Net immediate positions include securities purchased or sold (other than mortgage-backed agency securities) that
have been delivered or are scheduled to be delivered in five business days or less and
"when-issued" securities that settle on the issue date of offering. Net immediate positions for
mortgage-backed agency securities include securities purchased or sold that have been
delivered or are scheduled to be delivered in thirty business days or less.
Forward positions reflect agreements made in the over-the-counter market that specify
delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt
securities are included when the time to delivery is more than five business days. Forward
contracts for mortgage-backed agency securities are included when the time to delivery is
more than thirty business days.
n.a.
n.a.
4. Futures positions reflect standardized agreements arranged on an exchange. All futures
positions are included regardless of time to delivery.
5. Overnight financing refers to agreements made on one business day that mature on the
next business day; continuing contracts are agreements that remain in effect for more than one
business day but have no specific maturity and can be terminated without advance notice by
either party; term agreements have a fixed maturity of more than one business day. Financing
data are reported in terms of actual funds paid or received, including accrued interest.
6. Matched-book data reflect financial intermediation activity in which the borrowing and
lending transactions are matched. Matched-book data are included in the financing breakdowns given above. The reverse repurchase and repurchase numbers are not always equal
because of the "matching" of securities of different values or different types of collateraliza
tion.
NOTE, "n.a." indicates that data are not published because of insufficient activity.
Major changes in the report form filed by primary dealers induced a break in the dealer data
series as of the week ending January 28, 1998.
A30
1.44
Domestic Financial Statistics • May 1998
FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES
Debt Outstanding
Millions of dollars, end of period
Agency
Sept.
1 Federal and federally sponsored agencies
2 Federal agencies
3 Defense Department'
4
Export-Import Bank 23
5
Federal Housing Administration
6
Government National Mortgage Association certificates of
participation"
Postal Service6
rl
8
Tennessee Valley Authority
9
United States Railway Association6
10 Federally sponsored agencies
11 Federal Home Loan Banks
12 Federal Home Loan Mortgage Corporation
13 Federal National Mortgage Association
14 Farm Credit Banks8
15 Student Loan Marketing Association
16 Financing Corporation10
17 Farm Credit Financial Assistance^Corporation"
18 Resolution Funding Corporation "
738,928
844,611
925,823
1,022,609
980,501
983,599
1,003,177
1,014,907
1,022,609
39.186
6
3,455
116
37,347
6
27.792
6
27,484
6
2,050
97
29.380
6
1,447
84
552
102
1,326
46
27,392
6
1,326
27,356
6
1,295
68
27.500
6
1.295
93
27,792
6
552
102
8,073
27,536
n.a.
5,765
29.429
n.a.
n.a.
n.a.
27,853
n.a.
n.a.
n.a.
27,786
n.a.
n.a.
n.a.
27,478
n.a.
n.a.
n.a.
27,386
n.a.
n.a.
27,350
n.a.
27,494
n.a.
27,786
n.a.
699,742
205,817
93,279
257,230
53,175
50,335
8,170
1,261
807,264
896,443
263,404
156,980
331,270
60,053
29,996
29,996
8,170
1,261
29,996
994,817
313,919
169,200
369,774
63,517
37,717
8,170
1,261
29,996
953,017
292,174
165,690
348,115
61,091
45,211
8,170
1,261
29,996
956,207
295,212
160,050
358,003
61,612
40,531
8,170
1,261
29,996
975,821
302,310
172,433
356,149
61,093
43,000
8,170
1,261
29,996
987,407
308,745
174,900
361,602
61,093
40,321
8,170
1,261
29,996
994,817
313,919
169,200
369,774
63,517
37,717
8,170
1,261
29,996
103,817
78,681
58,172
49,090
48,625
49,944
48,698
32,523
49,090
3,449
8,073
n.a.
3,200
2,044
5,765
n.a.
3,200
n.a.
1,431
1,326
n.a.
n.a.
n.a.
n.a.
1,326
1,295
n.a.
n.a.
n.a.
n.a.
552
n.a.
n.a.
1,295
n.a.
n.a.
n.a.
n.a.
33,719
17,392
37,984
21,015
17,144
29.513
18,325
16,702
21.714
14,300
15,568
17,431
13,895
14,917
19,716
13,530
14,819
19,054
13,530
14,819
2,879
13,530
14,898
20,110
n.a.
243,194
119,961
299,174
57,379
47,529
8,170
1.261
44.763
MEMO
19 Federal Financing Bank debt11
20
21
22
23
24
Lending to federal and federally sponsored agencies
Export-Import Bank3
Postal Service*
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association6
Other lending
25 Farmers Home Administration
26 Rural Electrification Administration
27 Other
1. Consists of mortgages assumed by the Defense Department between 1957 and 1963
under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. I, 1976.
3. On-budget since Sept. 30. 1976.
4. Consists of debentures issued in payment of Federal Housing Administration insurance
claims. Once issued, these securities may be sold privately on the securities market.
5. Certificates of participation issued before fiscal year 1969 by the Government National
Mortgage Association acting as trustee for the Farmers Home Administration, the Department
of Health. Education, and Welfare, the Department of Housing and Urban Development, the
Small Business Administration, and the Veterans Administration.
6. Otf-budget.
7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Includes
Federal Agricultural Mortgage Corporation, therefore details do not sum to total. Some data
are estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, which is
shown on line 3 7.
9. Before late 1982, the association obtained financing through the Federal Financing Bank
(FFB). Borrowing excludes that obtained from the FFB, which is shown on line 22.
n.a.
n.a.
13,530
14,898
20,110
10. The Financing Corporation, established in August 1987 to recapitalize the Federal
Savings and Loan Insurance Corporation, undertook its first borrowing in October 1987.
11. The Farm Credit Financial Assistance Corporation, established in January 1988 to
provide assistance to the Farm Credit System, undertook its first borrowing in July 1988.
12. The Resolution Funding Corporation, established by the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989, undertook its first borrowing in October 1989.
13. The FFB, which began operations in 1974, is authorized to purchase or sell obligations
issued, sold, or guaranteed by other federal agencies. Because FFB incurs debt solely for the
purpose of lending to other agencies, its debt is not included in the main portion of the table to
avoid double counting.
14. Includes FFB purchases of agency assets and guaranteed loans; the latter are loans
guaranteed by numerous agencies, with the amounts guaranteed by any one agency generally
being small. The Farmers Home Administration entry consists exclusively of agency assets,
whereas the Rural Electrification Administration entry consists of both agency assets and
guaranteed loans.
Securities Markets and Corporate Finance A31
1.45
NEW SECURITY ISSUES
Tax-Exempt State and Local Governments
Millions of dollars
1997
Type of issue or issuer,
or use
1 All issues, new and refunding1
July
Aug.
Sept.
Oct.
145,657
171,222
214,693
17,786
17,401
21,499
21,898
20,207
21,342
16,770
21,306
By type of issue
2 General obligation
3 Revenue
56,980
88,677
60,409
110,813
69,934
134,989
7,679
9,061
5,062
11,518
3,590
17,909
7,837
14,061
5,713
14,494
8,005
13,337
5,608
11,162
9,893
11,413
By type of issuer
4 State
5 Special district or statutory authority2
6 Municipality, county, or township . ..
14,665
93,500
37,492
13,651
113,228
44,343
18,237
134,919
70,558
1,984
10,715
4,041
1,352
10,480
4,803
1,278
14,890
16,592
2,392
13,195
13,920
509
13,586
5,920
1.702
15,600
4,098
1,268
11.794
3,708
2.420
14.228
4,658
102,390
112,298
127,928
9,279
8,915
10,158
12,981
12,979
13,487
9,696r
12,538
23,964
11,890
9,618
19,566
6,581
30,771
26,851
12,324
9,791
24,583
6,287
32,462
31,860
13,951
12,219
27,794
6,667
35,095
2,701
666
1,182
1,789
334
2,607
2,781
1,276
576
1,481
799
2,024
1,943
2,654
907
2,305
441
1,908
2,647
1,215
1,402
2,341
729
4,642
2.973
1,420
1,217
4,090
574
2,705
2,981
1,144
683
2,940
897
4,842
2,338
1,521
598
1.540
3,525
1.760
687
2,903
581
3,082
7 Issues for new capital
8
9
10
11
12
13
By use >}f proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
1. Par amounts of long-term issues based on date of sale.
2. Includes school districts.
1.46
NEW SECURITY ISSUES
448
3,251
SOURCE. Securities Data Company beginning January 1990; Investment Dealer's
Digest before then.
US. Corporations
Millions of dollars
Type of issue, offering,
or issuer
1 All issues1
2 Bonds
2
By type of offering
3 Public, domestic
4 Private placement, domestic
5 Sold abroad
6
7
8
9
10
11
By industry group
Manufacturing
Commercial and miscellaneous ..
Transportation
Public utility
Communication
Real estate and financial
12 Stocks2
By type of offering
13 Public preferred
14 Common
15 Private placement'
16
17
18
19
20
21
By industry group
Manufacturing
Commercial and miscellaneous . .
Transportation
Public utility
Communication
Real estate and financial
Aug.
Sept.
Oct.
Dec.
673,779
n.a.
83,890
6735
52,117
85,001r
71,219r
58,350
63,992r
59,126
573,206
n.a.
72,638
57,886
46476
75,166
58,166'
46,543
55,973'
51,710
408,804
87,492
76,910
465,489'
n.a.
83,433'
537,778
n.a.
103,118'
60,979
n.a.
11,660
46,415
n.a.
11,471
40,840
n.a.
5,736
60,226
n.a.
14,941
47,037
n.a.
11,199
42,969
n.a.
3,574
54,443'
n.a.
1,530
41,062
n.a.
10,648
61,070
50,689
8,430
13,751
22,999
416,269
49,476'
40.544'
5,722'
9,498'
14,525'
429,157'
47,064
42,480
11,352
16.660
12,055
511.285
3,748
2,771
424
1,377
576
63,743
8,480
4,466
544
3,674
1,304
39,419
5,087
3,196
406
1,407
278
36,202
3,534
4,330
296
1,357
1,829
63,820
4,668
7,982
1,322
1,664
342
42,189'
2,152
1,166
299
1,590
1,586
39,750
2,976'
1,978'
448
1,372
923
48,276'
9,041
4,352
2,233
1,228
2,160
32,696
n.a.
11,252
9,419
5,541
9,835'
13,053
11,807
8,019'
7,416
29,814'
82,392'
3,846
7,406
678
8.741
645
4,895
1,878'
7,957'
1,824
11,229
1,060
10,747
3,578'
4,441'
3,607
3,809
1,627
2,938
272
1,046
374
5,384
1,056
2,804
563
483
120
3,875
836
1,673
139
48
52
2,371
1,294
3,714
472
405
235
3.885'
6,583
5,449
5,257'
5.675
100,573
10,917
57,556
32,100
33,208
83,052
21,545
27,844
804
1,936
1,077
47,367
1. Figures represent gross proceeds of issues maturing in more than one year; they are the
principal amount or number of units calculated by multiplying by the offering price. Figures
exclude secondary offerings, employee stock plans, investment companies other than closedend, intracorporate transactions, equities sold abroad, and Yankee bonds. Stock data include
ownership securities issued by limited partnerships.
July
2. Monthly data cover only public offerings.
3. Monthly data are not available.
SOURCE. Beginning July 1993, Securities Data Company and the Board of Governors of
the Federal Reserve System.
A32
1.47
Domestic Financial Statistics • May 1998
OPEN-END INVESTMENT COMPANIES
Net Sales and Assets1
Millions of dollars
1998
1997
Hem
1995
1996
June
July
Aug.
Sept.
Oct.
Nov.
Dec/
Jan.
1 Sales of own shares2
871,415
1,149,918
112318
125,710
114,358
116,021
126,824
110,231
150,133
147,994
2 Redemptions of own shares
699,497
171,918
853,460
296,458
86,759
25,559
90,095
35,615
84,366
29,992
86,449
29,572
98,109
28,715
76,115
34,117
113.359
36.774
109,395
38,598
2,06737
2,637,398
3,067,565
3,279,535
3,199434
3386347
3300,248
3375,197
3,430,795
3,479,784
142,572
1,924,765
139,396
2,498,002
180,552
2,887,013
182,122
3,097,413
180.152
3,019.382
180,159
3,206,388
181,314
3,118,934
188,192
3,187,005
176,231
3,254,564
186,301
3,293,483
5 Cash5
6 Other
4. Market value at end of penod, less curreni liabilities.
5. Includes all U.S. Treasury securities and other short-term debt securities.
SOURCE. Investment Company Institute. Data based on reports of membership, which
comprises substantially all open-end investment companies registered with the Securities and
Exchange Commission. Data reflect undenvritings of newly formed companies after their
initial offering of securities.
1. Data on sales and redemptions exclude money market mutual funds but include
limited-maturity municipal bond funds. Data on asset positions exclude both money market
mutual funds and limited-maturity municipal bond funds.
2. Includes reinvestment of net income dividends. Excludes reinvestment of capital gains
distributions and share issue of conversions from one fund to another in the same group.
3. Excludes sales and redemptions resulting from transfers of shares into or out of money
market mutual funds within the same fund family.
1.48
CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data at seasonally adjusted annual rates
1997
1996
Account
1 Profits with inventory valuation and
capital consumption adjustment
1995
1996
1997
Ql
Q2
Q3
Q4
Ql
Q2
Q3
04
650.0
622.6
2132
409.4
264 4
145.0
735.9
676.6
229 0
447.6
304 8
142.8
805.0
729.8
249 4
480.3
336 1
144.2
717.7
664.9
226 2
438.7
300 7
138.0
738.5
682.2
232 2
450.0
303 7
146.4
739.6
679.1
231 6
447.5
305 7
141.8
747.8
680.0
226.0
454.0
309 1
144.9
779.6
708.4
241.2
467.2
326 8
140.3
795.1
719.8
244 5
475.3
333 0
142.3
827.3
753.4
258.2
495.2
339.1
156.1
818 1
737.3
253.6
483.7
345.6
138.1
-24 3
51.6
-2 5
61.8
5 5'
69.7
-5 1
57.9
-5 4
61.6
-2 7
63.2
3.3
64.4
35
67.7
5.9
69.4
3.6
70.3
9.2'
71.6'
SOURCE. U.S. Department of Commerce, Survey of Current Business.
1.51
DOMESTIC FINANCE COMPANIES
Assets and Liabilities'
Billions of dollars, end of period; no! seasonally adjusted
1997
1996
Account
1995
1997r
1996
Q2
Q3
Q4
Ql
Q2
Q3
Q4
ASSETS
1 Accounts receivable, gross2
607.0
233.0
301.6
72.4
637.1
244.9
309.5
82.7
663.5
256.8
318.8
87.9
626.7
240.6
305.7
80.4
628.1
244.4
301.4
82.2
637.1
244.9
309.5
82.7
648.0
249.4
315.2
83.4
651.6
255.1
311.7
84.8
660.5
254.5
319.5
86.4
663.5
256.8
318.8
87.9
60.7
12.8
55.6
13.1
52.7
13.0
57.2
12.7
54.8
12.9
55.6
13.1
51.3
12.8
57.2
13.3
54.6
12.7
52.7
13.0
533 5
250.9
568.3
290.0
597.8
312.4
556.7
258.7
560.5
268.7
568.3
290.0
583.9
289.6
581.2
306.8
593.1
289.1
597.8
312.4
784.4
858.3
910.2
815.4
829.2
858.3
873.4
887.9
882.3
910.2
15.3
168.6
19.7
177.6
24.1
201.5
17.7
169.6
18.3
173.1
19.7
177.6
18.4
185.3
18.8
193.7
20.4
189.6'
24.1
201.5
14 All other liabilities
15 Capital, surplus, and undivided profits
51.1
300.0
163.6
85.9
60.3
332.5
174.7
93.5
64.7
328.9
189.6
101.3
56.3
319.0
163.2
89 7
57.9
322.3
164.8
92.8
60.3
332.5
174.7
93.5
61.0
324.6
189.2
94.9
60.0
345.3
171.4
98.7
61.6'
322.8'
190.1'
97.9'
64.7
328.9
189.6
101.3
16 Total liabilities and capital
784.4
858.3
910.1
815.4
829.2
858.3
873.4
887.9
882.3
910.1
4
Real estate
5 LESS: Reserves for unearned income
6
Reserves for losses
8 All other
9 Total assets
LIABILITIES AND CAPITAL
11 Commercial paper
Debt
12 Owed to parent
1. Includes finance company subsidiaries of bank holding companies but not of retailers
and banks. Data are amounts carried on the balance sheets of finance companies; securitized
pools are not shown, as they are not on the books.
2. Before deduction for unearned income and losses.
Securities Market and Corporate Finance A33
1.52
DOMESTIC FINANCE COMPANIES
Owned and Managed Receivables'
Billions of dollars, amounts outstanding
Type of credit
1997'
Aug.
Sept.
Seasonally adjusted
1 Total
682.4
762.4
810.6
2
3
4
281.9
72.4
328.1
306.6
111.9
343.8
326.9
Consumer
Real estate
Business
121 I
362.5
799.0'
322.7
123.4
350.8
322.6'
120.7
355.8'
324.4'
121.5
356.8'
323.7'
121.7
360.3'
326.9'
121.1'
362.5'
325.6
122.1
364.7
Not seasonally adjusted
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
Consumer
Motor vehicles loans
Motor vehicle leases
Revolving"
Other1
Securitized assets4
Motor vehicle loans
Motor vehicle leases . . . .
Revolving
Other
Real estate
One-to four-family
Other
Securitized real estate assets4
One-to four-family
Other
Business
Motor vehicles
Retail loans
Wholesale loans5
Leases
Equipment
Loans
Leases
Other business receivables6..
Securitized assets4
Motor vehicles
Retail loans
Wholesale loans
Leases
Equipment
Loans
Leases
Other business receivables6
689.5
769.7
818.3
791.4
795.3'
800.8r
806.9'
818.3r
813.6
285.8
81.1
80.8
28.5
42.6
310.6
86.7
92.5
32.5
33.2
330.9
87.0
96.8
38.6
34.4
322.4
88.4
98.3
33.5
35.2
323.3'
88.5
96.1
34.9
35.0
324.2'
86.8
95 9
34.7'
35.3
325.4'
86.0
96 4
34.8'
35.5
330.9'
87.0
96.8
38.6'
34.4
327.0
87.4
94.6
37.6
35.2
34.8
3.5
n.a.
14.7
72.4
n.a.
n.a.
36.8
8.7
0.0
20.1
111.9
52.1
30.5
44.3
10.8
0.0
19.0
121.1
59.0
28.9
38.3
8.9
0.0
19.7
123.4
59.1
39.7
10.0
0.0
19.0'
120.7
56.6
29.8
42.6
9.9
0.0
18.9'
121,5
58.5
29.3
42.5
11.0
0.0
19.2'
121,7
59.4
29.0
44.3
10.8
00
59.0'
289
42.8
10.7
0.0
18.7
122.1
59.8
29.3
n.a.
33.0
0.2
366.2
63.5
25.6
27.7
10.2
10.2
10.2
10.2
10.2
34.0
0.3
3514'
67.4
26.0
31.8
9.6
199.0
51.9
147.1
53.1
33.5
0.3
355.1'
61.2
26.5
25.0
9.7
198.5
50.3
148.2
54.7
33.0
0.2
359.8'
62.0
8.0
28.9
0.4
347.2
67.1
25.1
33.0
9.0
9.0
9.0
9.0
9.0
25.8
9.8
198.9
49.6
149.4
54.0
33.0
0.2
366.2'
63.5'
256
27 7
10.2'
2O4.0
51.7
152.3
51.1
32.8
0,2
364,4
61.8
26.1
25.7
10.1
204.6
51.2
153.4
52.0
8.0
8.0
8.0
8.0
8.0
8.0
8.0
8.0
9.0
9.0
9.0
9.0
9.0
9.0
9.0
9.0
10.2
10.2
10.2
10.2
10.2
10.2
10.2
10.2
19.6
2.2
17.4
0.0
9.6'
3.6'
6.0
2.6
28.4
2.1
26.3
0.0
9.7'
3.8'
5.8
2.7'
32.4
2.5
29.8
0.0
9.9'
4.1'
5.8
2.6'
33.0
2.4
30.5
0.0
10,7'
4.2'
6,5
4.0'
31.5
2,3
29,2
0.0
10.4
3.9
6.5
4.0
331.2
66.5
21.8
36.6
8.0
8.0
8.0
8.0
NOTE. This table has been revised to incorporate several changes resulting from the
benchmarking of finance company receivables to the June 1996 Survey of Finance Companies. In that benchmark survey, and in the monthly surveys that have followed, more detailed
breakdowns have been obtained for some components. In addition, previously unavailable
data on secuntized real estate loans are now included in this table. The new information has
resulted in some reclassification of receivables among the three major categories (consumer,
real estate, and business) and in discontinuities in some component series between May and
June 1996
Includes finance company subsidiaries of bank holding companies but not of retailers and
banks. Data in this table also appear in the Board's G.20 (422) monthly statistical release. For
ordering address, see inside front cover.
1. Owned receivables are those carried on the balance sheet of the institution. Managed
receivables are outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of [he loan originator. Data are shown
30.1
33.9
0.3
345.6
65.2
25.4
30.4
9.4
194.9
51.3
143.6
53.0
19.8
2.3
17.5
0.0
10,3
4.1
6.2
2.4
26.3
19.0'
121.1'
before deductions for unearned income and losses. Components may not sum to totals
because of rounding.
2. Excludes revolving credit reported as held by depository institutions that are subsidiaries of finance companies,
3 Includes personal cash loans, mobile home loans, and loans to purchase other types of
consumer goods such as appliances, apparel, boats, and recreation vehicles.
4. Outstanding balances of pools upon which securities have been issued; these balances
are no longer earned on the balance sheets of the loan originator.
5. Credit arising from transactions between manufacturers and dealers, that is, floor plan
financing
6. Includes loans on commercial accounts receivable, factored commercial accounts, and
receivable dealer capital; small loans used primarily for business or farm purposes; and
wholesale and lease paper for mobile homes, campers, and travel trailers.
A34
Domestic Financial Statistics • May 1998
1.53
MORTGAGE MARKETS Mortgages on New Homes
Millions of dollars except as noted
1997
Item
1995
1996
1998
1997
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
1
2
3
4
5
Terms'
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan-to-price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount)2
Yield (percent per year)
6 Contract rate1
7 Effective rate1-3
8 Contract rate (HUD series)4
175.8
134.5
78.6
27.7
1.21
182.4
139.2
78.2
27.2
1.21
180.1
140.3
80.4
28.2
1.02
191.2
148.2
79.8
28.2
1.06
190.6
147.0
79.3
28.3
1.12
183.4
142.4
80.1
28.1
0.94
184.0
143.5
80.8
28.6
0.95
190.7
149.8
81.0
28.2
0.96
184.1
142.3
80.5
28.5
0.91
195.3
148.5
78.6
28.0
0.99
7.65
7.85
8.05
7.56
7.77
8.03
7.57
7.73
7.76
7.42
7.59
7.67
7.43
7.61
7.51
7.39
7.54
7.48
7.26
7.40
7.38
7.25
7.40
7.25
7.13
7.27
7.16
7.09
7.24
7.22
8.18
7.57
8.19
7.48
7.89
7.26
8.02
7.16
7.52
7.10
7.53
6.90
7.51
6.84
7.17
6.74
7.08
6.56
7.06
6.63
SECONDARY MARKETS
Yield (percent per year)
9 FHA mortgages (Section 2O3)5
10 ONMA securities6
A :tivity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12 FHA/VA insured
13 Conventional
253,511
28,762
224,749
287,052
30,592
256,460
316,678
31,925
284,753
304.528
31,193
273,335
307,256
31,847
275,409
310,421
32.080
278.341
314,627
31,878
282.749
316,678
31.925
284,753
320,062
31,621
288,441
322,957
31,650
291,307
14 Mortgage transactions purchased (during period)
56,598
68,618
70.465
7,606
6,544
7,619
8.166
6.692
7,647
8,630
Mortgage commitments (during period)
15 Issued7 . . .
16 To sell8
56,092
360
65,859
130
69,965
1,298
5.960
219
7.573
215
9,190
300
5.123
139
6.275
140
12,199
60
10,587
0
107,424
267
107,157
137,755
220
137,535
164,421
180
164,241
155 169
190
154.979
157,165
186
156,979
159,801
183
159,618
160,974
180
160,794
164,421
180
164,241
169,142
180
168,962
175,770
180
175.590
98,470
85.877
125,103
119,702
117,397
114,260
9,808
9,187
10,362
9,727
12,175
11,713
11,152
10,832
15,975
14,587
13.120
12.702
13,610
12,481
118.659
128,995
120,089
9,913
10,877
11,986
12,047
15.805
15,638
17,397
FEDERAL HOME LOAN MORTGAGE CORPORATION
Mortgage holdings (end of period^
17 Total
18 FHA/VA insured
19 Conventional
Mortgage transactions (during period)
20 Purchases
21 Sales
22 Mortgage commitments contracted (during period)9
1. Weighted averages based on sample surveys of mortgages originated by major institutional lender groups for purchase of newly built homes; compiled by the Federal Housing
Finance Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the borrower or the
seller) to obtain a loan.
3. Average effective interest rate on loans closed for purchase of newly built homes,
assuming prepayment at the end of ten years.
4. Average contract rate on new commitments for conventional first mortgages; from U.S.
Department of Housing and Urban Development (HUD). Based on transactions on the first
day of the subsequent month.
5. Average gross yield on thirty-year, minimum-downpayment first mortgages insured
by the Federal Housing Administration (FHA) for immediate delivery in the private
secondary market. Based on transactions on first day of subsequent month.
6. Average net yields to investors on fully modified pass-through securities backed by
mortgages and guaranteed by the Government National Mortgage Association (GNMA),
assuming prepayment in twelve years on pools of thirty-year mortgages insured by the
Federal Housing Administration or guaranteed by the Department of Veterans Affairs.
7. Does not include standby commitments issued, but includes standby commitments
converted.
8. Includes participation loans as well as whole loans.
9. Includes conventional and government-underwritten loans. The Federal Home Loan
Mortgage Corporation's mortgage commitments and mortgage transactions include activity
under mortgage securities swap programs, whereas the corresponding data for FNMA
exclude swap activity.
Real Estate
1.54
A35
MORTGAGE DEBT OUTSTANDING1
Millions of dollars, end of period
Type of holder and properly
1 All holders.
2
3
4
5
By type of property
One- to four-family residences ..
Multifamily residences
Nonfarm. nonresidential
Farm
By type of holder
6 Major financial institutions
7
Commercial banks2
8
One- to four-family
9
Multifamily
10
Nonfarm, nonresidential
11
Farm
12 Savings institutions"*
13
One- to four-family
14
Multifamily
Nonfarm, nonresidential
Farm
Life insurance companies
One- to four-family
Multifamily
Nonfarm, nonresidential
Farm
One- to four-family
Multifamily
Farmers Home Administration4
One- to four-family
Multifamily
Nonfarm. nonresidential
Farm
Federal Housing and Veterans' Administrations
One- to four-family
Multifamily
Resolution Trust Corporation
One- to four-family
Multifamily
Nonfarm, nonresidential
Farm
Federal Deposit Insurance Corporation
One- to four-family
Multifamily
Nonfanm, nonresidential
Farm
Federal National Mortgage Association
One- to four-family
Multifamily
Federal Land Banks
One- to four-family
Farm
Federal Home Loan Mortgage Corporation
One- to four-family
Multifamily
53 Mortgage pools or trusts
54
Government National Mortgage Association
Oneto four-family
55
""
- - ....
Multifamily
56
Federal Home Loan Mortgage Corporation
57
One- lo four-family
58
Multifamily
59
Federal
National Mortgage Association
60
Oneto four-family
61
Multifamily
62
63 Farmers Home Administration
One- to four-family
64
Multifamily
65
Nonfarm, nonresidential
66
Farm
67
Private mortgage conduits
69
One- to four-family6
Multifamily
70
71
Nonfarm, nonresidential
72
Farm
73 Individuals and others7
74
One- to four-family
75
Multifamily
76
Nonfarm, nonresidential..
77
Farm
1994
Ql
Q2
Q3
Q4p
4,392,093'
4,606,303'
4,929,430'
4,929,430'
4,986,602'
5,076,193'
5,176,094
5,277,185
3,357,475'
274,625'
677,022'
82,971
3,533,295'
287,297'
701,150'
84,561
3.761,711'
312.558'
768,027'
87,134
3,761,711'
312,558'
768,027'
87,134
3,806,572'
316.582'
775,795'
87,653
3,870,145'
323,069'
794,301'
88,678'
3,946,690
327,991
811,657
89,755
4,019,228
338,135
829,476
90,346
1,819,806'
1,012,711'
615,861'
39,346
334,953'
22,551
596.191
477,626
64,343
53,933
289
210,904
7,018
23,902
170,421
9,563
1,894,420'
1,090.189'
669,434'
43,837
353,088'
23,830
596,763
482,353
61,987
52,135
288
207.468
7,316
23,435
167,095
9,622
1,979,114'
1,145,389'
698,508'
46,675'
375,322'
24,883
628,335
513,712
61,570
52,723
331
205.390
1,979,114'
1,145,389'
698,508'
46,675'
375,322'
24,883
628,335
513,712
61,570
52,723
331
205,390
6,772
23,197
165,399
10,022
1,993,046'
1,160,136'
708,802'
47,618
378,474'
25,242
626,381
513,393
60,645
52,007
336
206,529
6,799
23,320
166,277
10,133
2,033,655'
1,196,517'
2,066,259
1,227,076
752,011
49,648
398,619
26,798
629,757
518,199
60,335
50,878
344
2,084,728
315,580
6
6
0
41,781
18,098
11,319
5,670
6,694
10,964
4,753
6,211
10,428
5,200
2,859
2,369
0
7,821
1,049
1.595
5.177
0
174,312
158,766
15,546
28,555
1,671
26,885
41,712
38,882
2,830
306,774
2
300,935
2
2
0
41,596
17,303
11,685
6,841
5,768
6,244
3,524
2,719
0
0
0
0
0
2,431
365
413
300,935
2
2
0
41.596
17,303
11,685
6,841
5,768
6,244
3,524
2,719
0
0
0
0
0
2,431
365
413
1,653
0
174,556
160,751
13,805
29,602
1,742
27.860
46,504
41,758
295,203
6
6
0
41,485
17,175
11,692
6,969
5,649
4,330
2,335
1,995
0
0
0
0
0
2,217
333
377
1,508
0
172,829
159,634
13,195
292,966
7
7
0
41,400
17,239
11,706
7,135
5,321
4,200
2,299
1.900
0
0
0
0
0
1,816
272
309
1.732,347'
450,934
441,198
9,736
490,851
487,725
3,126
530,343
520,763
9,580
19
3
0
9
7
2
0
41,791
17,705
11,617
6,248
6,221
9,809
5,180
4,629
1,864
691
647
525
0
4,303
492
428
3,383
0
176,824
161,665
15,159
28,428
1,673
26.755
43,753
39,901
3.852
6,772
23,197
165,399
10,022
1,653
0
174,556
160,751
13,805
29,602
1,742
27,860
46,504
41,758
4,746
4,746
29,668
1,746
60,070'
52,132'
338
208,077
6,842
23.499
167,548
10,188
1,235
0
170,386
157,729
12.657
29,963
1,763
28,200
2,113,770'
513,471
500,591
12,880
208,500'
14,925
36,774
0
524,360'
370,356'
69,306'
67,715'
16.983
538,347'
375,682'
73,533'
71,291'
17,841
578,945'
376,493'
1
578,945'
376,493'
81,560'
102,625'
18,268
584,583'
379,327'
83.354'
103,533'
18.368
si^o
26,061
629,062'
516,521'
45,194
40,092
5,102
1,866,763'
472,283
461,438
10,845
515,051
512,238
2,813
582,959
569,724
13,235
11
2
0
5
4
296,459'
227,800'
21,279
47,380
0
102,625'
18,268
49.124'
387,661'
44,668
39,640
5,028
2,070,436'
506,340
494,158
12,182
554,260
551,513
2,747
650,780
633,210
17,570
3
0
0
0
3
359,053'
261,900'
33,689
63,464
0
260,200'
733,670'
27,922
2,070,436'
506,340
494,158
12,182
554.260
551.513
2,747
650.780
633.210
17.570
3
0
0
0
3
359,053'
261,900'
33,689
63,464
0
1. Multifamily debt refers to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not loans held by bank trust
departments.
3. Includes savings banks and savings and loan associations.
4. FmHA-guaranteed securities sold to the Federal Financing Bank were reallocated from
FmHA mortgage pools to FmHA mortgage holdings in 1986:Q4 because of accounting
changes by the Farmers Home Administration.
5. Outstanding principal balances of mortgage-backed securities insured or guaranteed by
the agency indicated.
Q4
562,894
560,369
2,525
663,668
645,324
18,344
3
0
0
0
3
373,734'
271,100'
35,607
67,027
0
2,153,812'
520,938
507,618
13,320
567,187
564,445
2.742
673,931
654,826
19,105
2
0
0
0
2
391,753'
279,450'
38,992
209,426
7,080
23,615
168,374
10,358
291,410
7
7
0
41,332
17,458
11.713
7,246
4,916
3,462
2,810
652
0
0
0
0
0
1,476
221
251
1,004
0
168,458
156,363
12,095
30,346
1,786
28,560
46,329
40,953
5,376
2,210.930
529,867
1,244,210
762,421
51,100
403,712
26.977
629,726
518,976
59,527
50,870
353
210,792
7,186
23,755
169,377
10,473
292.522
8
8
0
41,195
17.253
11,720
7,370
4,852
3,821
3.091
730
0
0
0
0
0
724
109
123
492
0
167.722
156,245
11,477
30,598
1,800
28,798
48,454
42,629
5,825
73,312
0
13,650
569,920
567,340
2,580
690,919
670,677
20,242
2
0
0
0
2
420,222
299,400
41,973
78.849
0
2,282,566
536,810
523,156
13,654
579,385
576,846
2,539
709,582
687,981
21,601
2
0
0
0
2
456,787
318,000
48,261
90,526
0
595,761'
387,372'
84,543'
105,279'
18,567'
607,495
396,169
85,861
106,689
18,776
617,369
403,526
87,823
107,129
18,891
516,217
6. Includes securitized home equity loans.
7. Other holders include mortgage companies, real estate investment trusts, state and local
credit agencies, state and local retirement funds, noninsured pension funds, credit unions, and
finance companies.
SOURCE. Based on data from various institutional and government sources. Separation of
nonfarm mortgage debt by type of property, if not reported directly, and interpolations and
extrapolations, when required for some quarters, are estimated in part by the Federal Reserve.
Line 69 from Inside Mortgage Securities and other sources.
A36
1.55
Domestic Financial Statistics • May 1998
C O N S U M E R CREDIT 1
Millions of dollars, amounts outstanding, end of period
1998
1997'
Holder and type of credit
1995
1996
1997'
Sept.
Aug.
Oct.
Nov.
Dec.
Jan.
Seasonally adjusted
1 Total
2 Automobile
4 Other
1,094,197
1,179,892
1,234,596
364.231
442.994
286,972
392,370
499,209
288,313
415,337
530,811
288,449
1,222,234
1,224,466
1,234,803
1,229,828
1,234,596
1,237,483
403,154
523,686
295,394
406,219
526,377
291,870
410,431
530,748
293,624
408,647
529,810
291,372
415,337
530,811
288,449
417,707
533,530
286,246
Not seasonally adjusted
5 Total
1,122,828
1,211,590
1,268,055
1,220,589
1,227.314
1,234,298
1,237,378
1,268,055
1,247,529
501,963
152,123
131,939
40,106
85,061
211,636
526,769
152,391
144,148
44,711
77,745
265,826
515,208
160,022
153.667
47,172
78,927
313,059
516,176
157,152
149.791
47,820
68,639
281,011
507,549
158,428
150,669
48,487
68,658
293,523
507,181
156.867
151,486
48,049
68,547
302,168
508,276
156,375
151,770
47,611
70,464
302,882
515,208
160,022
153,667
47,172
78,927
313,059
501,085
160,167
152,190
46,733
74,579
312,775
367.069
151.437
81.073
44,635
395,609
157,047
86,690
51,719
418,861
155,254
87.015
64,952
405,740
158,516
88,428
52,427
409,812
157,234
88,545
55,991
414,950
157,857
86,805
60,648
412,870
156,232
86.046
60,379
418,861
155,254
87,015
64,952
415,939
153,857
87,379
63,068
16 Revolving
17 Commercial banks
18
Finance companies
19 Nonfinancial business3
464,134
210,298
28,460
53,525
522,860
228,615
32,493
44,901
555,869
219,826
38,608
44,966
520,777
217,466
33,543
37.578
524,281
209,269
34,925
37.685
527.479
209,544
34,717
37.479
532,907
212,726
34,789
38,865
555,869
219.826
38,608
44,966
542,063
208.500
37.585
41,917
20
Pools of securitized assets4
21 Other
22
Commercial banks
23
Finance companies
24 Nonfinancial business3
25
Pools of securitized assets4
147,934
291,625
140,228
42,590
31,536
19,067
188,712
293,121
141,107
33,208
32,844
25,395
221.465
293.325
140,128
34,399
33,961
26,642
202,444
294,072
140.194
35,181
31.061
26.140
212,403
293,221
141,046
34,958
30,973
25,129
215,674
291,869
139,780
35,345
31,068
25,846
216,411
291.601
139,318
35,540
31,599
26,092
221,465
293,325
140,128
34,399
33,961
26,642
223,432
289.527
138,728
35,203
32,662
26,275
6
7
8
9
10
11
By major holder
Commercial banks
Finance companies
Credit unions
Savings institutions
Nonfinancial business1
Pools of securitized assets4
By major type of credit
13
14
15
Commercial banks
Finance companies
Pools of securitized assets4
1. The Board's series on amounts of credit covers most short- and intermediate-term credit
extended to individuals. Data in this table also appear in the Board's G.19 (421) monthly
statistical release. For ordering address, see inside front cover.
2. Comprises mobile home loans and all other loans that are not included in automobile or
revolving credit, such as loans for education, boats, trailers, or vacations. These loans may be
secured or unsecured.
1.56
3. Includes retailers and gasoline companies.
4. Outstanding balances or" pools upon which securities have been issued; these balances
are no longer carried on the balance sheets of the loan originator.
5. Totals include estimates for certain holders for which only consumer credit totals are
available.
TERMS OF CONSUMER CREDIT1
Percent per year except as noted
1998
1997
Item
1995
1996
1997
July
Aug.
Sept.
Oct
Nov.
Dec.
Jan.
INTEREST RATES
Commercial banks'
1 48-month new car
2 24-month personal
9 57
13.94
9.05
13.54
9 02
13.90
n.a.
n.a.
8 99
13.84
n.a.
n.a.
n.a.
n.a.
8.96
14.50
n.a.
n.a.
n.a.
n.a.
Credit card plan
3 All accounts.
4 Accounts assessed interest
16 02
15.79
15.63
15.50
15.77
15.55
n.a.
n.a.
15.78
15.79
n.a.
n.a.
n.a.
n.a.
15.65
15.57
n.a.
n.a.
n.a.
Auto finance companies
5 New car
6 Used car
11,19
14.48
9.84
13.53
7.12
13.27
6.71
13.51
5.93
13.38
6.12
13.29
7.27
13.22
6.85
13.14
5.93
13.16
6.12
12.77
54.1
52.2
51.6
51.4
54.1
51.0
54.6
51.4
55.5
51.2
55.4
50.8
54.4
50.6
53.7
50.5
53.5
50.5
52.8
52.2
92
99
91
100
92
99
94
99
93
99
93
99
92
101
91
99
92
99
92
98
16,210
11,590
16,987
12,182
18,077
12,281
18,281
12,307
18.329
12,204
18,520
12,190
18,779
12.287
18,923
12,389
19.121
12.547
18,944
12,391
OTHER TERMS 3
Maturity {months)
1 New car
8 Used car
Loan-to-value ratio
9 New car
10 Used car
Amount financed (dollars)
11 New car
12 Used car
1. The Board's series on amounts of credit covers most short- and intermediate-term credit
extended to individuals. Data in this table also appear in the Board's G.19 (421) monthly
statistical release. For ordering address, see inside front cover.
2. Data are available for only the second month of each quarter.
3. At auto finance companies.
Flow of Funds A37
1.57
FUNDS RAISED IN U S . CREDIT MARKETS 1
Billions of dollars; quarterly data at seasonally adjusted annual rates
1997
1996
Transaction category or sector
Q2
Q3
Q4
Qi
Q2
03
Q4
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors.
589.4
575.2
704.2
719.7
758.8
694.9
686.8
638.7
724.2
612.6
722.3
By sector and instrument
2 Federal government
3 Treasury securities
4 Budget agency securities and mortgages
256.1
248.3
7.8
155.9
155.7
.2
144.4
142.9
1.5
145.0
146.6
-1.6
23.1
23.2
-.1
62.7
60.5
2.2
163.2
166.3
-3.1
126.9
130.2
-3.3
81.2
82.6
-1.4
-97.1
-97.3
2
40.9
41.9
-.9
5 Nonfederal
333.3
419.4
559.7
574.6
735.7
632.2
523.6
511.8
643.0
709.6
681.4
10.0
21.4
-35.9
23.3
75.2
34.0
176.5
179.0
2.0
-6.8
2.2
124.9
18.1
-48.2
73.3
102.0
67.2
208.4
175.8
10.7
20.2
1.6
138.9
-.9
2.6
72.5
66.3
33.8
311.7
262.1
17.8
29.2
2.6
88.8
13.7
70.2
90.7
107.7
65.9
333.8
257.5
21.0
52.1
3.2
53.8
9.2
32.8
71.5
49.8
47.3
306.9
248.5
17.6
35.9
4.9
114.7
-14.2
-64.7
67.8
136.6
63.0
253.3
238.5
12.0
.7
2.2
81.9
-24.1
41.6
89.9
31.9
3.9
330.0
249.6
27.6
51.2
1.6
38.6
7.2
43.7
79.4
147.5
31.2
263.1
229.9
10.8
20.4
2.1
70.8
20.3
95.9
86.1
110.5
20.3
316.6
226.5
21.3
64.6
4.1
60.0
14.5
51.8
122.9
24.7
7J.5
340.9
261.5
15.1
60.0
4.3
53.0
62.3
322.8
141.9
134.3
3.3
4.4
-45.3
363.0
245.7
216.7
26.0
2.9
-49.0
383.0
190.3
144.1
41.5
4.8
1.3
364.1
311.7
244.7
60.7
6.3
59.9
406.0
204.9
159.9
37.1
7.9
21.2
363.5
220.4
192.0
27.9
.6
-60.3
312.1
159.9
92.6
58.2
9.2
39.8
357.9
244.5
193.6
46.6
4.3
40.6
350.4
279.1
205.7
66.8
6.7
80.0
322.2
317.3
250.2
64.0
3.1
41.8
425.8
405.9
329.3
65.5
111
77.0
69.8
-9.6
82.9
.7
~4.2
-14.0
-26.1
12.2
1.4
-1.5
71.1
13.5
49.7
8.5
-.5
70.5
11.3
49.4
9.1
.8
51.5
3.7
41.3
8.5
-2.0
36.1
9.6
11.2
15.1
.1
105.7
37.5
60.2
4.7
3.4
87.9
4.4
78.5
7.8
-2.7
26.3
15.5
11.0
-.7
.5
56.4
10.4
34.3
11.5
2
87.8
-11.6
94.6
7.3
-2.5
35.5
.7
25.3
15.7
-6.1
659.2
561.2
775.2
790.2
810.3
731.0
792.5
726.6
750.5
668.9
810.1
1,011.7
6
7
8
9
10
11
12
13
14
15
16
By instrument
Commercial paper
Municipal securities and loans
Corporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Home
Multifamily residential
Commercial
Farm
Consumer credit
17
18
19
20
21
22
Bv borrowing sector
Household
Nonfinancia] business
Corporate
Nonfarm noncorporate
Farm
State and local government
23 Foreign net borrowing in United States .
24 Commercial paper
25 Bonds
26 Bank loans n.e.c
27 Other loans and advances
28 Total domestic plus foreign
74.8
75.2
6.4
-18.9
125.1
156.6
-6.6
-25.9
1.0
60.7
218.7
52.3
46.5
3.2
2.6
67.4
65.6
1.7
128
89.3
74.4
147.9
138.3
414.4
312.2
36.6
63.2
2.4
31.5
Financial sectors
29 Total net borrowing by financial sectors . . .
30
31
32
33
Bv instrument
Federal government-related
Government-sponsored enterprise securities
Mortgage pool securities
Loans from U.S. government
34 Private
35 Open market paper
36 Corporate bonds
37 Bank loans n.e.c
38 Other loans and advances
39 Mortgages
40
4L
42
43
44
45
46
47
48
49
50
51
By borrowing sector
Commercial banking
Savings institutions
Credit unions
Life insurance companies
Government-sponsored enterprises
Federally related mortgage pools
Issuers of asset-backed securities (ABSs)
Finance companies
Mortgage companies
Real estate investment trusts (REITs)
Brokers and dealers
Funding corporations
293.6
464.3
448.4
536.3
614.3
721.7
436.8
644.8
325.9
661.0
536.7
933.8
165.3
287.5
176.9
115.4
-4.8
204.1
105.9
98.2
.0
231.5
90.4
141.1
.0
213.4
99.0
114.4
.0
301.4
126.9
174.5
.0
222.9
80.0
142 9
.0
252.8
123.3
129.6
.0
105.7
-8.9
1146
.0
286.2
198.1
88.1
.0
161.0
46.4
114.6
0
300.6
160.4
176.8
40.5
117.6
-13.7
22.6
9.8
244.3
42.7
188.2
4.2
3.4
5.9
304.9
92.2
156.5
16.8
27.9
11.4
400.9
166.7
170.8
13.6
36.0
14.0
420.3
105.4
230.9
20.6
52.7
10.8
213.9
84.4
80.7
2.6
33.3
12.9
392.0
162.0
164.0
20.4
31.2
14.3
220.2
175.9
41.4
7.0
-20.1
16.0
374.8
77.8
215.1
4.9
63.0
14.0
375.6
168.2
139.3
16.7
37.5
14.0
633.1
20.1
12.8
2
3
172.1
115.4
68.8
48.7
-11.5
13.7
.5
23.1
22.5
2.6
-.1
-.1
105.9
98.2
132.9
50.2
.4
6.0
-5.0
34.9
13.0
25.5
.1
I.I
90.4
141.1
132.0
45.9
12.4
12.8
-2.0
64.1
46.5
19.8
.1
.2
99.0
114.4
168.2
48.7
4.8
23.8
8.0
80.7
44.5
42.1
-.2
.3
126.9
174.5
162.5
67.8
16.0
11.5
13.2
62.7
14.7
25.8
.3
-.4
80.0
142.9
88.0
30.7
1.7
13.7
5.7
33.7
26.8
23.0
.3
2.0
123.3
129.6
138.6
43.8
12.1
17.7
4.9
123.0
13.7
-16.8
_ ^
79.7
31.9
2
A
198.1
88.1
95.0
123.8
5.0
20.3
34.9
-16.1
32.0
22.3
.2
.2
46.4
114.6
169.6
-2.9
3.6
26.9
-6.9
130.7
60.7
41.7
3
- 3
160.4
140.3
80.6
84.7
.0
128.3
-5.5
122.2
-14.4
22.4
3.6
13.4
11.3
.2
.2
80.6
84.7
82.8
-1.4
.0
3.4
12.0
6.3
.i
-8.9
114.6
62.9
7.2
5.9
20.2
-2.9
129.4
140.3
.0
244.6
287.4
25.7
63.3
12.0
345.5
66.6
4.9
27.9
7.0
78.8
A38
1.57
Domestic Financial Statistics • May 1998
FUNDS RAISED IN U.S. CREDIT MARKETS'—Continued
1997
1996
Transaction category or sector
1993
1994
Q2
Q3
04
Ql
Q2
Q3
Q4
All sectors
52 Total net borrowing, all sectors
952.7
1,025.5
1,223.7
1326.5
1,424.6
1,452.7
1,229.3
U71.S
1,076.4
1,329.9
1,346.7
1.945.5
5?
54
55
56
57
58
59
60
-5.1
421.4
74.8
280.3
-7.2
-.8
128.7
60.7
35.7
448.1
-35.9
153.2
62.9
50.3
186.2
124.9
74.3
348.5
-48.2
311.1
114.7
70.1
214.2
138.9
102.6
376.5
2.6
278.4
92.1
62.5
323.1
88.8
184.1
236.5
70.2
302.8
129.7
99.8
347.8
53.8
124.2
364.1
32.8
313.6
85.5
100.1
317.7
114.7
107.7
386.1
-64.7
208.7
143.8
99.7
266.1
81.9
142.3
379.7
41.6
332.4
60.1
32.4
344.4
38.6
198.6
186.9
437
131.8
1538
11.7
279.1
70.8
108.5
189.1
95.9
335.5
126.8
83.6
330.6
60.0
171.1
201.9
51.8
356.8
48.7
108.5
354.9
53.0
258.1
368.0
89.3
387.1
189.4
195.6
426.4
31.5
Open market paper
U.S. government securities
Municipal securities
Corporate and foreign bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Consumer credit
Funds raised through mutual funds and corporate equities
61 Total net issues
429.7
125.2
143.9
230.5
217.8
380.4
71.9
156.0
197.7
183.0
313.9
176.6
62 Corporate equities
63
Nonfinancial corporations
64 Foreign shares purchased by U.S. residents . . .
65 Financial corporations
66 Mutual fund shares
137.7
21.3
63.4
53.0
292.0
24.6
-44.9
48.1
21.4
100.6
-3.5
-58.3
50.4
4.4
147.4
-7.0
-64.2
58.8
-1.6
237.6
-41.2
-79.9
38.0
.7
259.0
75.9
.4
70.1
5.4
304.5
-100.1
-127.6
32.7
-5.1
171.9
-20.3
-56.0
42.3
-6.7
176.3
-55.7
-78.8
47.0
-23.9
253.4
-57.9
-90.4
53.0
-20.6
240.9
10.2
-60.4
62.2
8.4
303.7
-61.5
-90.0
-10.4
38.8
238.2
1. Data in this table also appear in the Board's Z. 1 (780) quarterly statistical release, tables
F.2 through F.4. For ordering address, see inside front cover.
Flow of Funds
1.58
A39
SUMMARY OF FINANCIAL TRANSACTIONS'
Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates
1996
Transaction category or sector
1994
1993
1995
1996
1997
1997
Q2
Q3
Q4
Ql
Q2
Q3
Q4
NET LENDING IN CREDIT MARKETS 2
1 Total net lending in credit markets
2 Domestic nonfederal nonfinancial sectors
3
Household
4
Nonfinancial corporate business
6
State and local governments
7 Federal government
8 Rest of the world
9 Financial sectors
10 Monetary authority
11 Commercial banking
12
U.S.-chartered banks
13
Foreign banking offices in United States
14
Bank holding companies
15
Banks in U.S.-affiliated areas
16 Savings institutions
17 Credit unions
18 Bank personal trusts and estates
19 Life insurance companies
20 Other insurance companies
21
Private pension funds
22
Stale and local government retirement funds
23 Money market mutual funds
24 Mutual funds
25
Closed-end funds
26
Government-sponsored enterprises
27
Federally related mortgage pools
28
Asset-backed securities issuers (ABSs)
29
Finance companies
30
Mortgage companies
31
Real estate investment trusts (REITs)
32
Brokers and dealers
33 Funding corporations
952.7
1.025.5
1,223.7
1,326.5
1,424.6
1,452.7
1,229.3
1,371.5
1,076.4
1,329.9
1,346.7
1,945.5
43.0
241.8
278.5
17.7
-85.7
-1.8
-17.9
5.1
13.5
-115.2
101.7
5.3
311.1
274.9
37.4
-222.3
-81.9
-9.1
-158.5
-22.8
-5.9
-205.8
-204.2
58.0
-66.3
-30.0
-51.5
-175.8
-121.5
20.0
1293
798 8
36.2
142 2
149.6
-9.8
.0
24
-23.3
21.7
9.5
100.9
27 7
49.5
22.7
20.4
159.5
20.0
87.8
84.7
80.2
-20.9
0
.6
14.8
- 35.3
-55U
—27.5
1323
678.9
3L5
163.4
148.1
11.2
.9
33
6.7
28.1
7.1
66.7
24.9
45.5
223
30.0
-7.1
-3.7
117.8
115.4
61.7
48.3
-24.0
4.7
-44.2
-16.2
-81.8
_2
273^9
1 035 7
' 12J
265.9
186.5
75.4
-.3
4.2
-7.6
16.2
18.8
99.2
21.5
61.4
27.5
86.5
52.5
10.5
84.7
98.2
111.1
49.9
-3 4
2.2
90 1
-24.6
37.0
-7.7
409.3
942.9
12.3
187.5
119.6
633
3.9
19.9
25.5
3.9
72.5
22.5
46.5
45.9
88.8
48.9
2.2
92.0
141.1
101.8
18.4
82
3^5
-15.7
17.2
-19.6
4.9
316.4
1^18 5
"383
324.3
275.0
39.6
5.4
4.2
-7.7
15.7
9.2
121.1
233
66.9
48.3
84.5
747
.8
95.0
114.4
129.8
22.2
6.7
5.0
159
30.4
-1.7
- i
268.9
872.8
11.7
179.7
121.9
50.7
5.4
1.7
43.8
33.0
4.2
.9
30.5
46 9
60.4
27.0
54.3
12
114.7
174.5
135.7
36.3
-26.8
3.4
-72.0
12.3
-131.7
-7.1
485.3
973.4
11.5
196.1
119.5
71 1
4.8
.7
49.7
21.1
7.S
123.2
14.2
41.3
45.5
83.0
27.5
2.2
81.4
142.9
62.0
13.2
-130.2
-4.1
532.2
1.001.9
8.4
2483
158.9
80.5
10.5
-1.6
-47.9
243
7.2
118.1
27.7
31.0
41.9
813
253
2.2
137.9
129.6
89.6
-6.2
4 1
3.9
82 7
-76
14.5
56
3010
1,087.5
' 47.2
309.2
301.1
1.1
5.1
1.8
23.8
25.7
8.9
175.0
27.9
58.5
39.2
19.7
91.6
13
119.2
88.1
80.2
1.9
10 0
5.0
-117
-33.1
-75.1
3.0
402.7
1,116.8
14.3
209.8
209.5
- 6
-50
5.8
-42.1
15.7
9.4
107.0
32.4
66.2
90.6
123.6
103.6
- 13.0
-51.0
-5.3
a
42.4
9.1
192.5
1,756.8
' 54.3
469.9
393.5
53.8
19.4
3.2
-7 1
2.7
103
108 1
32.8
90.5
59.7
129 3
41 4
-.9
160.1
140.3
292.7
-23.2
97
5.0
74 0
107.2
952.7
1,025.5
1,223.7
1,326.5
1,424.6
1,452.7
8
.0
.4
-18.5
50.5
1173
-70.3
-23.5
20^2
71.3
1377
292.0
52.0
6] 4
36.0
255.6
11.4
24.6
345.6
-5.8
.0
.7
52.9
89.8
-9.7
-39.9
19.6
43.3
78.2
24^6
100.6
93.7
- 1
34.5
246.1
2.6
17 8
59.0
250.8
8.8
2.2
.6
35.3
9.9
-12.7
96.6
65.6
142.3
110.5
-3.5
147.4
105.2
26.7
44 9
233.9
4.6
-49.7
39.5
462.9
-6.3
-.5
.0
82.0
-51 6
158
97.2
114 0
145.8
40 3
-7.0
237.6
68.1
52.4
43.6
227.2
14.0
12.5
22.6
490.7
.7
-.5
.0
89.0
-40.2
41.1
98.5
120 5
157.6
114.0
-41.2
259.0
75.7
103.8
57.0
298.6
20.1
26.4
15.8
544.1
2,318.0
2,084.3
2,694.7
2,925.1
3,364.6
-.2
-5.7
4.2
46.4
15.8
-190.1
-.2
43.0
-2.7
69.4
16.6
-145.6
-.5
25.7
-3.1
36.1
17.8
- 110.6
-1.0
55.8
-3.3
31.9
16 1
-12(17
-1.5
-1.3
-4.3
-4.8
-2.8
3
-6.0
-3.8
-29.1
2,454.5
2,111.1
2,768.2
2.4
91
~~ 1.1
32.6
-18 4
2.4
.7
3.4
3.4
35.5
8.6
-j
-60^2
1 9
3673
913 0
37 4
308 1
195.9
104.0
2.2
6.1
-5.3
18.5
8.2
94 3
- 1
52.4
3.6
65.2
61.9
27
45.1
114.6
19.3
44.9
- -$
5.0
-145
31 9
.1
55.5
114.6
107.0
65.2
7.2
5.0
15.8
15.6
RELATION OF LIABILITIES
TO FINANCIAL ASSETS
34 Net flows through credit markets
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
Other financial sources
Official foreign exchange
Special drawing rights certificates
Treasury currency
Foreign deposits
Net interbank transactions
Checkable deposits and currency
Small time and savings deposits
Large time deposits
Money markel fund shares
Security repurchase agreements
Corporate equities
Mutual fund shares
Trade payables
Security credit
Life insurance reserves
Pension fund reserves
Taxes payable
Investment in bank personal trusts
Noncorporate proprietors' equity
Miscellaneous
55 Total financial sources
56
57
58
59
60
61
Liabilities not identified as assets ( —)
Treasury currency
Foreign deposits
Net interbank liabilities
Security repurchase agreements
Taxes payable
Miscellaneous
.9
1,229.3
1,371.5
1,076.4
1,329.9
1,346.7
1,945.5
-26.6
-1.8
2.3
119.7
-97 2
105.9
94.2
180.2
145.1
-15.9
-1O0.1
171.9
-15.9
5.3
59.2
221.6
12.5
19.2
44.5
413 4
7
.0
-23
104.5
17.6
-533
90.1
135.4
187.5
833
-203
176.3
97.2
125.2
66.7
277.0
16.6
19.8
5.9
656.5
-17 6
-2.1
4
188.6
-88.8
85.3
157.9
49.9
182.4
32 8
-55.7
253.4
66.8
117.1
39 8
243.3
30.4
23.5
22.6
587.8
.4
.0
2
18.8
-43 7
64.2
24.5
1763
58.5
193.7
-57.9
240.9
63.4
137.4
77.5
337.3
1.8
26.3
19.7
6JL1J
2.4
.0
1.3
105.4
-42.7
-49.2
46.6
194.1
243.6
115.9
10.2
303.7
131.9
79 7
29 9
28.9
19.7
406 6
175
.0
-1.9
43.1
14.5
64.3
165.1
61.6
146.0
113 6
-61.5
238.2
40.6
81.2
480
3020
18.1
26.9
1.2
548.8
2,755.4
2,566.9
3.355.8
2,994.4
3,302.3
3,349.2
3,812.6
-.6
68.3
-16.0
52.1
20.5
-283.0
-1.0
26.6
-22.5
100.1
23 2
-1232
1.3
-3.1
86.3
-4.4
-90.6
-240.1
37.3
42
132.6
216
19(1
-.3
178.0
26.9
-104.6
12 2
-189.3
- 5
-10.2
-24.4
178.6
28.3
-321 4
.8
78.1
-51.6
6.2
11.2
-281 7
-2.4
27.2
-15.0
1283
30.3
-339.8
.5
-4.0
-33.9
-2.7
-3.9
-33.4
-6.6
-5.0
2
27.1
-4.7
-103.5
-21.4
-3.7
-42.7
-9.4
-2.6
15.2
16.1
-4.8
-73.1
2.1
-3.4
-17.2
-19.5
-4.8
-58.6
2,»83.«
3,563.4
2,763.6
2,875.4
3,212.0
3,068.4
3,513.7
3,604.6
4,066.9
1 6
.0
.0
3.0
-50.8
3.9
-3.2
8V1
23.1
98 4
75.9
304.5
116.9
-34.8
31.4
1956
7.6
11.8
19.6
415-1
203
62.8
311.8
Floats not included in assets ( - )
52 Federal government checkable deposits
63 Other checkable deposits
54 Trade credit
65 Total identified to sectors a s assets
1. Data in this table also appear in the Board's Z.I (780) quarterly statistical release, tables
F. 1 and F.5. For ordering address, see inside from cover.
2. Excludes corporate equities and mutual fund shares
A40
1.59
Domestic Financial Statistics • May 1998
SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1
Billions of dollars, end of period
1997
1995
Transaction category or sector
1996
1997
Q2
Q3
Q4
Ql
Q2
Q3
Q4
Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors
13,013.0
13,717.2
14,436.9
15,194.1
14,065.4
14,241.9
14,436.9
14,602.1
14,727.9
14,913.9
15,194.1
flv sector and instrument
2 Federal government
3
Treasury securities
4
Budget agency securities and mortgages .
3,492.3
3,465.6
3,636.7
3,608.5
28.2
3,781.8
3,755.1
26.6
3,804.9
3,778.3
26.5
3.693.8
3,665.5
28.2
3.733.1
3,705.7
27.4
3,781.8
3,755.1
26.7
3,829.8
3,803.5
26.3
3,760.6
3,734.3
26.3
3,771.2
3,745.1
26.1
3,804.9
3,778.3
26.5
5 Nonfederal
10,772.3
10,967.3
11,142.7
11,389.2
179.3
1,326.7
1,440.2
996.5
786.9
5,032.7
3.870.1
308.7
765.2
1,205.0
176.6
1,338.9
1,470.9
998.5
801.3
5,129.1
3,946.7
312.5
780.2
89.8
1,227.3
168.6
1,366.2
1,489.5
1,035.8
836.5
5,227.2
4,019.2
321.6
796.0
90.3
1,265.4
17
18
19
20
21
22
9,520.7
10,080.4
By instrument
Commercial paper
Municipal securities and loans
Corporate bonds
Bank loans n,e.c
Other loans and advances
Mortgages
Home
Multifamily residential
Commercial
Farm
Consumer credit
139.2
1,341.7
1,253.0
759.9
669.6
4,373.4
3,357.5
268.4
664.5
83.0
983.9
157.4
1.293.5
By borrowing sector
Household
Nonfinancial business
Corporate
Nonfarm noncorporate
Farm
State and local government
23 Foreign credit market debt held in
United States
24 Commercial paper
25 Bonds
26 Bank loans n.e.c
27 Other loans and advances
28 Total credit market debt owed by nonftnandal
sectors, domestic and foreign
11,389.2
26.6
10,508.8
168.6
1,366.2
1,489.5
1,035.8
836.5
5,227.2
4,019.2
321.6
796.0
90.3
1,265.4
181.7
1,297.9
1,359.4
889.2
757.3
4,741.6
3,633.7
290.8
731.0
86.2
1.144.5
173.0
1,281.7
1,376.4
919.2
769.4
4,815.7
3,704.1
293.8
731.1
86.7
1,173.5
156.4
1,296.0
1,398.8
928.2
770.6
4,893.4
3.761.7
300.7
1.122.8
156.4
1,296.0
1,398.8
928.2
770.6
4.893.4
3,761.7
300.7
743.9
87.1
1.211.6
1,211.6
168.7
1,305.2
1,418.7
963.8
782.9
4,946.6
3,806.6
303.4
749.0
87.7
1,186.4
4,482.5
3,921.7
2,657.7
1,121.8
142.2
1,116.5
4,850.7
4,162.2
2,869.2
1,147.9
145.1
1,067.6
5,204.6
4,381.7
3.042.4
1,189.3
149.9
1,068.9
5,571.5
4,689.0
3.282.8
1.250.1
156.2
1,128.7
4,991.3
4,309.6
2,993.7
1.167.8
148.2
1,070.7
5,101.0
4,352.1
3.028.4
1,174.1
149.5
1,055.7
5,204.6
4,381.7
3,042.4
1.189.3
149 9
1,068.9
5.240.0
4,454.2
3,104.9
1,200.9
148.3
1,078.1
5,340.5
4,531.4
3,160.4
1,217.6
153.4
1,095.4
5,439.4
4,598.0
3,209.7
1,233.0
155.4
1,105.2
5,571.5
4.689.0
3,282.8
1,250.1
156.2
1,128.7
371.8
442.9
S13.4
558.8
462.6
490.2
513.4
517.8
531.6
548.7
558.8
42.7
242 3
26.1
60.8
56.2
291.9
34.6
60.2
67.5
341.3
43.7
61.0
65.1
382.6
52.1
59.0
54.5
306.7
40.5
60.9
65.8
321.7
41.7
61.0
67.5
341.3
43.7
61.0
69.3
344.1
43.5
60.9
71.3
352.7
46.4
61.2
64.3
376.3
48.2
59.9
65.1
382.6
52.1
59.0
13,384.9
14,160.1
14,950.3
15,752.9
14,528.0
14,732.1
14,950.3
15,119.8
15,259.5
15,462.6
15,752.9
1,326.3
861.9
736.9
4.581.7
3,533.3
279.2
684.7
84.6
743.9
87.1
88.7
Financial sectors
29 Total credit market debt owed by
financial sectors
30
31
32
33
34
35
36
37
38
39
By instrument
Federal government-related
Government-sponsored enterprise securitii
Mortgage pool securities
Loans from U.S. government
Private
Open maifcet paper
Cotporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages
40
41
42
43
44
45
46
47
48
49
50
51
52
By borrowing sector
Commercial banks
Bank holding companies
Savings institutions
Credit unions
Life insurance companies
Government-sponsored enterprises
Federally related mortgage pools
Issuers of asset-backed securities (ABSs) . .
Brokere and dealers
Finance companies
Mortgage companies
Real estate investment dusts fRFJTs)
Funding corporations
3,797.3
4,248.4
4,784.7
5,366.0
4^11.9
4,624.1
4,784.7
4,861.4
5,029.4
5,133.7
5,366.0
2,172.7
2,376.8
806.5
1,570.3
.0
1,871.5
486.9
1.172.0
53.1
135.0
24.6
2.608.3
896.9
1.711.4
.0
2,1764
579.1
1,328.5
69.8
162.9
2.821.7
1,472.1
.0
1.624.6
441.6
983.9
48.9
131.6
18.7
2,489.4
846.1
1,643.3
0
2,022.5
517.3
1,265.2
63.9
146.8
29.2
2,545.1
866.1
1,679.0
.0
2,079.0
538.6
1,288.8
64.2
155.1
32.4
2,608.3
896.9
1,711.4
.0
2,176.4
579.1
1,328.5
69.8
162.9
36.0
2,634.7
894.7
1,740.0
.0
2,226.7
157.9
40.0
2,706.2
944.2
1,762.1
.0
2,323.2
642.5
1,390.7
72.9
173.7
43.5
2,746.5
955.8
1,790.7
.0
2,387.2
684.7
1,396.0
76.5
183.0
47.0
2,821.7
995.9
1,825.8
.0
2,544.3
745.7
1,466.3
83.4
198.9
50.0
94.5
102.6
113.6
150.0
140.5
.4
995 9
1,825.8
998.4
35.3
554.5
36.4
73.7
104.6
148.4
128.3
.3
1.2
846.1
373.8
125.7
161.1
144.3
.4
1.8
944.2
1,762.1
852.5
35.3
557.8
34.3
60.0
350.0
130.0
164.6
149.8
.5
1.9
955.8
1,790.7
908.8
33.6
532.7
35.2
66.7
363.4
160.3
.6
1.8
995.9
1,825.8
998.4
35.3
554.5
312.7
896.9
1,711.4
819.1
27.3
529.8
31.5
49.9
312.7
115.3
151.6
136.3
.4
1.8
894.7
1,740.0
829.8
26.6
528.4
33.0
54.9
348.6
141.0
148.0
115.0
.4
.5
806.5
1,570.3
687.0
29.3
483.9
19.1
37.1
248.6
113.6
150.0
140.5
.4
1.6
896.9
1,711.4
819.1
27.3
529.8
31.5
49.9
107.7
133.6
112.4
700.6
.5
.6
700.6
1,472.1
554.1
34.3
433.7
18.7
31.1
211.0
36.0
995.9
1,825.8
.0
2,544.3
745.7
1.466.3
83.4
198.9
50.0
141.0
168.6
160.3
.6
1.8
1,643.3
756.6
24.6
506.3
28.1
42.0
282.0
149.1
134.8
.4
1.1
866.1
1,679.0
781.2
26.1
513.7
28.5
45.4
291.0
1.6
623.0
1.334.4
71.3
168.6
36.4
73.7
373.8
All sectors
53 Total credit market debt, domestic and foreign..
54
55
56
57
58
59
60
61
Open market paper
U.S. government securities
Municipal securities
Corporate and foreign bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Consumer credit
17,182.2
18.408.5
19,735.0
21,118.9
19,039.9
19,356.2
19.735.0
19,981.2
20,288.9
20,596.3
21,118.9
623.5
5.665.0
1,341.7
2,479.1
834.9
862.0
4,392.1
983.9
700.4
6,013.6
1,293.5
2,790.3
949.6
932.1
4,606.3
1,122.8
803.0
6,390.0
1.296.0
3.068.7
1,041.7
994.5
4.929.4
1.211.6
979.4
6,626.5
1,366.2
3,338.4
1,171.3
1,094.4
5.277.2
1.265.4
753.6
6,183.1
1,297.9
2,931.3
993.7
965.0
4,770.8
1,144.5
777.4
6,278.2
1,281.7
2,986.8
1,025.0
985.4
4,848.1
1,173.5
803.0
6,390.0
1,296.0
3,068.7
1,041.7
994.5
4,929.4
1,211.6
861.1
6,464.5
1,305.2
3,097.2
1,078.6
1,001.7
4,986.6
1,186.4
893.1
6,466.8
1,326.7
3,183.6
1,115.7
1,021.8
5,076.2
1,205.0
925.7
6,517.7
1,338.9
3.243.2
1,123.1
1.044.2
5,176.1
1.227.3
979.4
6,626.5
1,366.2
3,338.4
1.171.3
1,094.4
5,277.2
1,265.4
1. Data in this table also appear in the Board's Z.I (780) quarterly statistical release, tables
L.2 through L.4 For ordering address, see inside front cover.
Flow of Funds
A41
1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1
Billions of dollars except as noted, end of period
Transaction category or sector
Q2
Q3
Q4
Ql
Q2
Q3
Q4
CREDIT MARKET DEBT OUTSTANDING 2
1 Total credit market assets
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
Domestic nonfederal nonfinancial sectors . .. .
Household
Nonfinancial corporate business
Nonfarm noncorporate business
State and local governments
Federal government
Rest of the world
Financial sectors
Monetary authority
Commercial banking
U.S.-charlered banks
Foreign banking offices in United Stales .
Bank holding companies
Banks in US.-afflliated areas
Savings institutions
Credit unions
Bank personal trusts and estates
Life insurance companies
Other insurance companies
Private pension funds
State and local government retirement funds . ..
Money market mutual funds
Mutual funds
Closed-end funds
Government-sponsored enterprises
Federally related mortgage pools
Asset-backed securities issuers (ABSs)
Finance companies
Mortgage companies
Real estate investment trusts (REITs)
Brokers and dealers
Funding corporations
17,182.2
18,408.5
19,735.0
21,118.9
19,039.9
19,356.2
19,735.0
19,981.2
20,288.9
20,596.3
21,118.9
2,998.6
1,941.9
289.2
37.6
729.9
204.4
1,254.8
12,724.3
368.2
3,254.3
2.877.8
1,904.9
286.8
37.9
648.1
204.2
1,563.1
13,763.4
2,753.7
1,826.9
296.3
39.0
591.5
2,936.2
1,934.5
285.7
38.1
677.8
199.2
2,896.5
1,941.3
273.8
2.825.6
1,911.7
281.8
2,725.9
1,829.4
277.1
38.8
580.5
199.1
2,227.3
15,443.9
412.7
3,912.9
3.351.9
501.0
22.5
37.5
927.3
303.6
93.3
3,056.1
412.6
18.0
33.4
913.3
263.0
229.2
1.581.8
468.7
718.3
483.3
545.5
771.3
96.4
748.0
1,570.3
627.9
526.2
33.0
15.5
183.4
109.3
2.785.6
1,873.7
272.3
38.6
600.9
198.3
2,125.3
15,179.7
412.4
3,856.8
3,295.2
501.8
23.8
36.1
937.8
299.2
237.4
1,724.1
498.1
792.5
542.7
656.5
860.6
99.7
854.8
1,762.1
753.5
553.1
43.6
21.5
161.2
112.0
2,753.7
1,826.9
296.3
2,869.6
337.1
2,905.0
1,964.5
291.0
38.3
611.1
196.5
1,953.6
14,679.9
393.1
3,707.7
3,175.8
475.8
22.0
34.1
933.2
288.5
233.1
1,654.3
491.2
45.4
22.8
165.1
112.3
591.5
201.4
2,270.0
15.893.8
431.4
4.031.9
3,450.8
515.4
27.4
38.3
925.5
304.2
242.3
1,775.4
514.4
831.7
577.5
718.8
894.8
99.5
908.6
1,825.8
859.5
566.7
47.9
24.0
183.6
130.3
18.4
29.2
920.8
246.8
248.0
1,482.6
446.4
380.8
3,520.1
201.4
2,270.0
15,893.8
431.4
4,031.9
3,450.8
515.4
27.4
38.3
925.5
304.2
242.3
1,775.4
514.4
229.4
231.3
1,596.7
480.7
746.7
509.8
594.7
809.0
97.6
758.9
1,643.3
686.0
539.9
39.3
17.2
1,627.0
484.2
757.1
517.7
18.0
2,905.0
1,964.5
291.0
38.3
611.1
196.5
1,953.6
14,679.9
393.1
3,707.7
3,175.8
475.8
22.0
34.1
933.2
288.5
233.1
1,654.3
491.2
764.8
529.2
634.3
820.2
98.7
813.6
1,711.4
729.7
544.5
41.2
19.0
138.2
147.1
167.7
108.1
113.9
104.5
659.0
838.3
99.3
824.3
1,740.0
734.5
552.4
41.1
20.3
164.1
122.5
1,722.2
14,182.3
386.3
3.590.8
3,101.3
437.1
18.1
34.3
932.7
276.9
38.2
643.2
197.5
1,844.8
14,417.4
386.2
3,643.3
3,135.3
454.2
19.3
34.5
945 2
282.6
38.5
593.6
196.9
2,051.1
14,907.6
397.1
3,775.7
3,218.1
499.5
22.5
35.6
931.9
291.2
235.2
1,680.2
491.2
777.9
239.7
1,750.4
506.2
39.0
87.3
544.5
41.2
19.0
167.7
104.5
831.7
577.5
718.8
894.8
99.5
908.6
1,825.8
859.5
566.7
47.9
24.0
183.6
130.3
17,182.2
18,408.5
19,735.0
21,118.9
19,039.9
19,356.2
19,735.0
19,981.2
20488.9
20,5963
21,118.9
53.2
8.0
17.6
324.6
63.7
10.2
53.7
9.7
18.2
48.9
9.2
18.2
527.0
198.9
1.286.2
2,475.5
711.4
1,048.7
814.3
3,013.5
461.9
650.8
7,453.9
1,390.5
54.3
9.7
18.8
415.1
225.8
1,220.8
2,357.9
557.2
838.1
687.6
2.211.6
317.8
577.1
6,030.9
46.7
9.2
18.3
489.9
197.1
1.265.3
2,432.3
117.9
829.0
6,031.6
53.7
9.7
18.2
438.1
240.8
1.245.1
2.377.0
590.9
891.1
700.3
2,342.4
358.1
593.8
6,313.8
1,314.8
120.0
872.0
46.3
9.2
18.3
485.2
210.2
140.1
1.050.7
6.441.0
61.4
10.2
18.2
385.2
250.0
1,212.3
2,340.2
511.1
809.5
692.0
2,129.9
318.6
562.3
5,901.1
1,269.7
113.4
811.7
5,943.3
48.9
9.2
18.2
527.0
198.9
1,286.2
2.475.5
711.4
1,048.7
814.3
3,013.5
461.9
650.8
7,453.9
1.390.5
140.1
1,050.7
6,441.0
656.9
455.8
459.0
718.8
86.0
663.3
1,472.1
516.8
476.2
36.5
13.3
764.8
529.2
634.3
820.2
98.7
813.6
1,711.4
729.7
606.6
818.3
98.1
779.3
1,679.0
704.1
538.3
40.2
531.6
809.1
562.0
678.7
889.2
99.7
868.7
1,790.7
783.1
564.4
RELATION OF LIABILITIES
TO FINANCIAL ASSETS
34 Total credit market debt
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
Other liabilities
Official foreign exchange
Special drawing rights certificates. .
Treasury currency
Foreign deposits
Net interbank liabilities
Checkable deposits and currency ..
Small lime and savings deposits . ..
Large time deposits
Money market fund shares
Security repurchase agreements. . . .
Mutual fund shares
Security credit
Life insurance reserves
Pension fund reserves
Trade payables
Taxes payable
Investment in bank personal trusts .
Miscellaneous
53 Total liabilities
Financial assets not included in liabilities ( + )
54 Gold and special drawing rights
55 Corporate equities
56 Household equity in noncorporate business . ..
57
58
59
60
61
62
Liabilities not identified as assets ( —)
Treasury currency
Foreign deposits
Net interbank transactions
Security repurchase agreements
Taxes payable
Miscellaneous
Floats not included in assets ( — )
63 Federal government checkable deposits
64 Other checkable deposits
65 Trade credit
66 Total identified to sectors as assets
106.0
767.4
5,792.0
1,245.1
2.377.0
590.9
891.1
700.3
2,342.4
358.1
593.8
6,313.8
1,314.8
120.0
872.0
6,163.8
6,163.8
606.0
950.8
713.3
2,411.5
380.0
603.7
6,414.7
1,300.6
133.2
890.4
6,344.1
6.276.2
46.1
9.2
18.7
516.2
186.9
1,234.2
2,437.0
696.1
1,005.1
792.5
2,977.0
432.2
638.8
7,325.1
1,351.3
137.5
1,035.2
6,394.0
40,762.9
44^78.5
48,859.7
42,379.7
43,120.4
44,378.5
45,146.0
46,506.6
47,829.3
48^59.7
21 1
6,237.9
3,419.1
22.1
8,331.3
3,625.4
21.4
10,061.1
3,836.5
21.1
12,958.6
4,087.6
22.0
9,105.0
3,727.1
21.2
9,340.5
3.792.1
21.4
10,061.1
3,836.5
20.9
10,072.3
3.914.9
21.1
11.719.8
4.052.3
21.0
12,804.6
4,111.8
21.1
12,958.6
4,087.6
-5.4
276.2
-65
67.8
48.8
-977.7
-5.8
301.2
-9.0
103.9
60.8
-1,092.2
-6.8
-6.3
326.1
-8.0
125.5
61.0
-1,222.4
-6.0
347.7
-11.6
-6.9
398.6
-1.6
110.9
70.6
-1,382.7
-7.0
396.0
-8.1
153.4
72.5
-1,439.6
-22.1
164.8
-7.4
422.4
-28.3
187.9
67.7
1.300.4
-6.8
354.1
-10.6
135.8
73.2
-1,414.2
-6.8
415.6
135.8
73.2
-1,414.2
-7.4
422.4
-28.3
187.9
93.2
-1,631.2
82.3
-1,448.0
-1,631.2
3.4
38.0
-245.8
3.1
34.2
-274.9
-1.6
30.1
-308.7
-8.1
26.2
-353.2
-1.7
23.1
-377.8
-1.6
30.1
-338.5
-308.7
-9.7
25.6
-363.8
-6.8
27.9
-390.0
-7.8
19.5
-419.9
-8.1
26.2
-353.2
47,820.7
53,620.4
59,446.2
67,225.5
56,268.0
57,419.8
59,446.2
60313.1
63.501.4
65,989.1
67,225.5
280.1
18.2
359.2
290.7
1,242.0
1,229.3
2,183.2
411.2
602.9
549.5
1.477.3
279.0
505.3
4,880.1
1,141.5
101.4
699.4
5,402.7
2.279.7
37341.4
476.9
745.3
660.0
1,852.8
305.7
550.2
5,600.5
1,246.7
438.1
240.8
354.1
-10.6
I. Data in this table also appear in the Board's Z. 1 (780) quarterly statistical release, tables
L. 1 and L.5. For ordering address, see inside front cover.
-3.4
31.8
1,263.0
113.4
1,220.0
2,427.1
2. Excludes corporate equities and mutual fund shares.
646.7
952.4
765.1
2,719.6
414.8
623.1
6,940.1
1,322.2
128.9
969.7
93.2
A42
2.10
Domestic Nonfinancial Statistics • May 1998
NONFINANCIAL BUSINESS ACTIVITY
Selected Measures
Monthly data seasonally adjusted, and indexes 1992=100, except as noted
1997
Measure
1 Industrial production1
1995
1996
1998
1997
June
July
Aug.
Sept.
Oct.
Nov.
Dec.'
Jan.'
Feb.
114.5
118.5
124.5
123.5
124.5
125.2
125.6
126.5
127.5r
127.9
128.0
128.1
110.6
111.3
109.9
113.8
108.3
120 8
113.7
114.6
111.8
119.6
110.8
126 2
118.5
119.6
114.4
128.8'
115.1
134 l r
117.6
118.6
113.5
127.7
114.7
133 0
118.1
119.2
113.9
128.6
114.6
134 9
119.2
120.5
114.6
130.9
115.3
134 9
119.1
120.3
114.5
130.6
115.2
136 1
120.2
121.5
115.9
131.3
116.3
136 7
121.2
122.5
116.7'
132.8'
117.3'
137 7'
121.1
122.3
116.2
133.3
117.3
138 7
121.3
122.7
116.8
133.2
116.9
138 9
121.3
122.6
116.5
133.5
117.4
139 0
116.0
120.2
127.0
126.1
126.9
127.9
128.0
129.1
130.4
130.9
131.3
131.3
82.8
81.4
81.7
81.3
81.5
81.8
81.6
81.9
82.3
82.3
82.2
81.8
10 Construction contracts3
122.0
130.8
139.8'
143.0
140.0
139.0
139.0
m.V
140.0'
140.0
135.0
134.0
11 Nonagricultural employment, total4
20 Retail sales5 ..
114.9
98.3
97.5
99.0
120.2
158.2
150.9
130.4
158.7
151 2
117.2
99.0
97.2
98.4
123.0
167.0
159.8
135.7
166.2
158 6
119.9
100.3
97.6
98.9
126.2
176.8
170.6
142.0
174.4
165 6
119.7
100.2
97.5
98.8
126.0
176.5
170.2
141.0
174.1
1645
120.1
100.2
97.5
98.8
126.5
176.7
170.3
141.1
174.3
166 5
120.1
100.4
97.7
98.9
126.5
177.8
171.7
142.1
175.2
167 2
120.4
100.4
97.7
99.0
126.8
178.3
172.3
142.8
175.8
166 7
120.7
100.6
97.9
99.2
127.2
179.3
173.5
144.4
176.6
166 5
121.1
100.9
98.1
99.5
127.6
180.6
175.6'
145.7
177.7'
166 8
121.5
101.3
98.3
99.7
127.9
181.3
176.3
146.4
178.5
167 6
121.9
101.9
98.5
99.9
128.2
182.4
177.5
146.4
179.9
169 2
122.2
102.0
98.5
99.9
128.6
n.a.
n.a.
n.a.
n.a.
170 0
Prices6
21 Consumer (1982-84=100)
22 Producer finished goods (1982= 100)
152.4
127.9
156.9
131.3
160.5
131.8
160.3
131.6
160.5
131.3
160.8
131.7
161.2
131.8
161.6
132.3'
161.5
131.8
161.3
131.1
161.6
130.2
161.9
130.1
Market groupings
3
Final, total
6
Intermediate
Industry groupings
8 Manufacturing
9 Capacity utilization, manufacturing (percent) . .
14
Manufacturing, production workers
17
18
Wages and salary disbursements
Manufacturing
1. Data in this table also appear in the Board's G.17 (419) monthly statistical release. For
the ordering address, see the inside front cover. The latest historical revision of the industrial
production index and the capacity utilization rates was released in December 1997. The recent
annual revision is described in an article in the February 1998 issue of the Bulletin. For a
description of the aggregation methods for industrial production and capacity utilization, see
"Industrial Production and Capacity Utilization: Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83 (February 1997), pp. 67-92. For details about the
construction of individual industrial production series, see "Industrial Production: 1989
Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp.
187-204.
2. Ratio of index of production to index of capacity. Based on data from the Federal
Reserve, DRI McGraw-Hill, U.S. Department of Commerce, and other sources.
3. Index of dollar value of total construction contracts, including residential, nonresidential, and heavy engineering, from McGraw-Hill Information Systems Company, F.W. Dodge
Division.
2.11
4. Based on data from U.S. Department of Labor, Employment and Earnings. Series covers
employees only, excluding personnel in the armed forces.
5. Based on data from U.S. Department of Commerce, Survey of Current Business.
6. Based on data not seasonally adjusted. Seasonally adjusted dala for changes in the price
indexes can be obtained from the U.S. Department of Labor, Bureau of Labor Statistics,
Monthly Labor Review.
NOTE. Basic data (not indexes) for series mentioned in notes 4 and 5, and indexes for series
mentioned in notes 3 and 6, can also be found in the Survey of Current Business.
Figures for industrial production for the latest month are preliminary, and many figures for
the three months preceding the latest month have been revised. See "Recent Developments in
Industrial Capacity and Utilization," Federal Reserve Bulletin, vol. 76 (June 1990), pp.
411-35. See also "Industrial Production Capacity and Capacity Utilization since 1987,"
Federal Reserve Bulletin, vol. 79 (June 1993), pp. 590-605.
LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
Thousands of persons; monthly data seasonally adjusted
1997
Category
1996
1997
July
Aug.
Sept.
HOUSEHOLD SURVEY DATA 1
1 Civilian labor force2
Employment
2
Nonagricultural industries3
3
Agriculture
Unemployment
4
Number
5
Rate (percent of civilian labor force)
132,304
133,943
126,297
136,294
136,404
136,439
136,406
136,864
137,493
137,557
121,460
3.440
123,264
3,443
126,159
3,399
126,209
3,452
126,368
3,379
126,339
3,422
126,583
3,327
127,191
3,384
127,392
3,385
127,764
3,319
127,829
3,335
7,404
5.6
7,236
5.4
6.739
4.9
6.633
4.9
6,657
4.9
6,678
4.9
6,496
4.8
6,289
4.6
6,392
4.7
6,409
4.7
6,393
4.6
117,191
119423
122,257
122,440
122,492
122,792
123,083
123,512
123,866
124,241
124^51
18,524
581
5,160
18,457
574
5,400
6.261
28,108
6,899
34,377
19,447
18,538
573
5.627
6,426
28,788
7,053
35,597
19,655
18,514
574
18,555
573
18,553
5.625
5,637
6.443
28,823
7,058
35,684
19,719
6.289
28,864
7,068
35,702
19,804
5,642
6,473
28,902
7,082
35,850
19,714
18,590
574
5,650
6.497
28,970
7,108
35,945
19,749
18,634
572
5,682
6,495
29,132
7,132
36,102
19,763
18,674
574
5,747
6,478
29,196
7,151
36,276
19,770
18,719
574
5,839
6,529
29,241
7,163
36,401
19,775
18,717
572
5,880
6,563
29,271
7,190
ESTABLISHMENT SURVEY DATA
6 Nonagricultural payroll employment4
7
8
9
10
11
12
13
14
Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government
6,132
27,565
6,806
33,117
19,305
1. Beginning January 1994, reflects redesign of current population survey and population
controls from the 1990 census.
2. Persons sixteen years of age and older, including Resident Armed Forces. Monthly
figures are based on sample data collected during the calendar week that contains the twelfth
day; annual data are averages of monthly figures. By definition, seasonality does not exist in
population figures.
3. Includes self-employed, unpaid family, and domestic service workers.
576
36,547
19,811
4. Includes all full- and part-time employees who worked during, or received pay for, the
pay period that includes the twelfth day of the month; excludes proprietors, self-employed
persons, household and unpaid family workers, and members of the armed forces. Data are
adjusted to the March 1992 benchmark, and only seasonally adjusted data are available at this
time.
SOURCE. Based on data from U.S. Department of Labor, Employment and Earnings.
Selected Measures A43
2.12
OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1
Seasonally adjusted
Ql
Q2
Q4r
Q3
Ql
Outpul (1992=100)
1 Total industry
123.3
125.1
2 Manufacturing
125.7
127.6
3
4
Q2
Q3
Q4
Capacity (percent of 1992 output)
147.8
149.6
ISO
Ql
Q2
Q3
Q4'
Capacity utilization rate (percent)
82.5
156.3
82.4
83.2
81.5
Primary processing
Advanced processing4
116.7
128.0
117.7
129.7
118.5
132.1
119.7
135.3
135.8
160.6
136.9
163.2
138.0
165.7
139.2
168.1
85.9
79.7
86.0
79.5
85.8
79.8
86.0
80.5
5
6
7
8
9
10
11
12
13
Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Industrial machinery and equipment
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment
137.5
113.5
120.9
119.4
122.7
163.9
216.4
133.6
140.2
116.4
123.8
122.6
125.3
168.2
226.6
130.5
143.7
114.9
125.5
122.8
128.8
173.9
236.6
136.7
147.2
114.7
127.7
126.2
129.5
177.7
246.0
144.0
170.4
137.3
134.7
134.1
135.2
193.3
264.4
180.6
173.8
138.6
136.0
135.4
136.4
199.0
276.7
182.6
177.2
140.0
137.2
136.6
137.7
204.4
289.1
184.7
180.6
141.3
138.5
137.9
138.9
210.0
301.9
186.7
80.7
82.7
89.8
89.1
90.8
84.8
81.9
74.0
80.7
84.0
91.0
90.6
91.8
84.5
81.9
71.4
81.1
82.1
91 5
89.9
93.5
85.1
81.9
74.0
81.5
81.1
92.2
91.6
93.2
84.6
81.5
77.1
89.9
92.8
95.6
98.6
122.7
123.4
124.1
124.8
73.3
75.2
77.1
79.0
14
15
16
17
18
19
Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
110.3
107.3
111.7
114.5
126.8
107.7
110.7
108.5
112.2
114.8
127.6
111.0
111.1
110.9
114.1
114.8
130.6
109.5
112.6
111.5
113.5
117.2
131.4
109.8
133.6
130.5
124.9
143.9
136.3
114.1
134.3
131.1
125.5
145.1
138.1
114.7
135.0
131.7
126.0
146.3
140.0
115.2
135.7
132.3
126.7
147.5
141.9
115.7
82.6
82.3
89.4
79.5
93.0
94.4
82.4
82.8
89.4
79.1
92.4
96.8
82.3
84.3
90.5
78.5
93.3
95.1
82.9
84.3
89.6
79.5
92.6
94.9
105.4
110.8
111.5
106.0
111.7
111.3
106.4
114.0
114.2
105.8
115.7
115.7
117.6
125.8
124.2
117.9
126.3
124.6
118.1
126.7
125.0
118.2
127.1
125.4
89.6
88.1
89.8
89.9
88.5
89.3
90.1
90.0
91.4
89.5
91.0
92.3
1975
Previous cycle"
Low
High
Feb.
Sept.
Oct.
Nov.'
Dec.'
Jan.
Feb.
20 Mining
21 Utilities
22
Electric
High
Low
Latest cycle
High
Capacity utilization rate (percent)2
1 Total Industry
72.6
87.3
71.1
85.4
78.1
82.6
82.7
83.0
83.3
83.2
83.0
70.5
86.9
69.0
85.7
76.6
81.7
81.6
81.9
82.3
82.3
82.2
81.8
91.2
87.2
68.2
71.8
88.1
86.7
66.2
70.4
88.9
84.2
77.7
76.1
86.1
79.7
85.7
79.7
85.7
80.2
86.2
80.6
86.1
80.6
86.0
80.5
85.6
80.1
89.2
88.7
100.2
105.8
90.8
68.9
61.2
65.9
66.6
59.8
87.7
87.9
94.2
95.8
91.1
63.9
60.8
45.1
37.0
60.1
84.6
93.6
92.7
95.2
89.3
73.1
75.5
73.7
71.8
74.2
80.9
83.2
90.2
89.4
91.4
81.0
80.7
91.5
90.8
92.5
81.1
80.1
92.3
91.9
92.8
81.8
82.8
93.1
92.1
94.4
81.7
80.5
91.4
90.6
92.5
81.3
79.8
92.1
91.8
92.7
80.9
80.4
91.2
91.2
91.4
96.0
89.2
93.4
74.3
64.7
51.3
93.2
89.4
95.0
64.0
71.6
45.5
85.4
84.0
89.1
72.3
75.0
55.9
84.8
82.2
73.8
84.2
81.0
76.2
84.8
80.9
75.0
84.6
82.0
78.1
84.4
81.6
78.2
84.2
81.1
77.0
83.6
80.6
75.1
78.4
67.6
81.9
66.6
87.3
79.2
73.3
77.9
78.2
78.5
80.5
81.1
81.2
87.8
91.4
97.1
87.6
102.0
96.7
71.7
60.0
69.2
69.7
50.6
81.1
87.5
91.2
96.1
84.6
90.9
90.0
76.4
72.3
80.6
69.9
63.4
66.8
87.3
90.4
93.5
86.2
97.0
88.5
80.7
77 7
85.0
79.3
74.8
85.1
82.6
82.0
89.5
79.6
92.9
94.7
82.3
84.5
90.1
78.8
93.6
95.4
82.8
84.5
89.2
79.3
91.2
96.2
83.0
85.1
89.7
78.9
93.0
93.8
83.0
83.5
89.9
80.1
93.7
94.6
83.2
84.7
88.7
80.2
83.0
84.1
88.4
80.4
95.1
94.6
94.3
96.2
99.0
88.2
82.9
82.7
96.0
89.1
88.2
88.0
92.6
95.0
87.0
83.4
87.1
90.1
87.7
89.4
90.1
90.8
92.5
89.6
92.0
94.3
89.7
90.7
91.5
89.2
90.3
91.0
90.6
87.4
89.3
90.2
88.1
90.1
89.2
2 Manufacturing
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Primary processing
Advanced processing4
Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Industrial machinery and
equipment
Electrical machinery
Motor vehicles and p a r t s . . . .
Aerospace and miscellaneous
transportation equipment
Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
20 Mining
21 Utilities
22
Electric
80.3
75.9
78.9
1. Data in this table also appear in the Board's G.17 (419) monthly statistical release. For
the ordering address, see the inside front cover. The latest historical revision of the industrial
production index and the capacity utilization rates was released in December 1997. The recent
annual revision is described in an article in the February 1998 issue of the Bulletin. For a
description of the aggregation methods for industrial production and capacity utilization, see
"'Industrial Production and Capacity Utilization: Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83 (February 1997), pp. 67-92. For details about the
construction of individual industrial production series, see "Industrial Production: 1989
Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp.
187-204.
2. Capacity utilization is calculated as the ratio of the Federal Reserve's seasonally adjusted
index of industrial production to the corresponding index of capacity.
3. Primary processing includes textiles; lumber; paper; industrial chemicals; synthetic
materials; fertilizer materials; petroleum products; rubber and plastics; stone, clay, and glass;
primary metals; and fabricated metals.
4. Advanced processing includes foods; tobacco; apparel; furniture and fixtures; printing
and publishing: chemical products such as drugs and toiletries; agricultural chemicals; leather
and products; machinery; transportation equipment; instruments; and miscellaneous manufactures.
5. Monthly highs, 1978-80; monthly lows, 1982.
6. Monthly highs, 1988-89; monthly lows, 1990-91.
A44
2.13
Domestic Nonfinancial Statistics D May 1998
INDUSTRIAL PRODUCTION
Indexes and Gross Value1
Monthly data seasonally adjusted
Group
1992
proportion
1997
1997
avg.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.'
Dec.1
Feb.P
Index (1992= 100)
MAIOR MARKETS
100.0
124.5
122.1
122.5
123.1
123.3
123.5
124.5
125.2
125.6
126.5
127.5
127.9
128.0
128.1
2 Products
3
Final products
4
Consumer goods, total
5
Durable consumer goods
6
Automotive products
7
Aulos and trucks
8
Autos, consumer
9
Trucks, consumer
10
Auto parts and allied goods
11
Other
12
Appliances, televisions, and
conditioners
!3
Carpeting and furniture
14
Miscellaneous home goods
15
Nondurable consumer goods
16
Foods and tobacco
17
Clothing
18
Chemical products
19
Paper products
20
Energy
21
Fuels
22
Residential utilities
60.5
4t>.3
29.1
«.l
2.6
1.7
.9
.7
.9
3.5
118.5
119.6
114.4
131.3
129.9
136.5
115.2
159.1
119.3
132.4
116.5
117.2
113.1
129.4
128.5
135.1
116.5
158.6
117.9
130.1
116.9
117.9
113.4
130.7
129.0
135.6
117.6
158.5
118.4
132.0
117.2
118.0
113.4
127.4
122.3
124.4
110.7
142.7
118.2
131.4
117.7
118.6
113.9
128.8
124.6
127.6
112.4
147.3
119.1
132.1
117.6
118.6
113.5
129.8
126.7
130.3
110.8
154.2
120.3
132.3
118.1
119.2
113.9
128.1
120.3
120.2
113.0
131.9
119.3
134.4
119.2
120.5
114.6
132.1
131.6
137.6
118.6
161.2
121.8
132.5
119.1
120.3
114.5
131.9
132.8
140.9
119.9
166.5
120.1
131.1
120.2
121.5
115.9
131.4
131.2
139.7
115.2
168.6
117.9
131.5
121.2
122.5
116.7
136.5
138.4
147.8
120.3
179.8
123.8
135.0
121.1
122.3
116.2
134.7
133.8
142.7
113.9
175.7
120.1
135.4
121.3
122.7
116.8
135.9
132.6
139.6
116.0
167.7
121.4
138.5
121.3
122.6
116.5
135.3
131.0
136.7
105.7
171.6
121.8
138.8
1.0
.8
1.6
23.0
10.3
2.4
4.5
2.9
2.9
.8
2.1
168.6
117.1
120.0
110.2
109.3
95.9
119.2
109.4
111.5
109.3
112.2
164.1
114.3
119.1
109.0
109.2
95.6
117.3
107 1
108.3
106.6
108.7
166.9
116.7
120.3
109.1
110.0
96.1
115.9
107.8
107.3
108.2
106.4
164.2
116.7
120.3
109.9
109.1
96.5
118.4
108.2
111.9
109.6
112.6
166.5
117.7
120.2
110.1
108.9
95.8
119.3
108.9
112.8
111.3
11.3.0
165.4
119.0
120.3
109.4
108.1
95.4
119.1
109.8
109.7
111.5
108.3
174.8
116.4
122.1
110.3
109.6
95.8
117.3
110.8
112.4
108.8
113.7
169.8
117.7
119.8
110.3
108.9
96.0
119.4
109.8
112.8
111.0
113.2
166.0
116.2
119.4
110.2
108.6
96.0
119.4
110.1
112.4
110.8
112.8
169.4
116.5
118.6
112.1
109.7
96.4
123.0
111.3
116.2
112.0
117.8
177.2
122.1
119.2
111.8
110.7
95.1
121.3
111.7
113.9
106.7
117.1
178.6
117.1
122.1
111.6
110.1
95.1
122.4
110.1
114.5
109.3
116.7
185.4
124.8
121.2
112.1
112.1
94.7
123.5
109.9
110.9
110.4
110.7
189.5
123.3
120.9
111.9
111.6
94.2
124.6
107.9
111.7
110.2
112.0
23
24
25
26
27
28
29
30
31
32
33
Equipment
Business equipment
Information processing and related .
Computer and office equipment .
Industrial
Transit
Autos and trucks
Other
Defense and space equipment
Oil and gas well drilling
Manufactured homes
17.2
13.2
5.4
1.1
4.0
25
1.2
1.3
3.3
.6
.2
128.8
141.9
168.1
385.1
133.3
111.2
119.7
135.0
75.2
149.7
139.1
124.6
136.5
160.9
341.5
129.8
105?
118.2
130.8
75.6
143.5
140.7
125.8
137.5
161.0
348.8
130.6
107.7
121.4
132.6
75.7
154.8
139.4
126.0
137.9
163.0
358.4
131.6
104.6
112.5
134.4
75.4
151.4
142.9
126.8
139.0
164.4
365.3
131.5
106.7
114.6
135.2
75.6
150.7
141.9
127.7
140.2
166.8
375.8
131.7
107.3
113.6
136.3
76.0
150.9
139.1
128.6
141.6
169.3
391.6
133.7
106.9
111.5
136.3
74.9
152.1
143.5
130.9
144.6
171.1
407.1
135.8
113.3
120.3
137.9
75.0
153.2
139.5
130.6
144.4
172.9
414.6
133.8
114.2
120.2
135.1
74.7
153.1
137.2
131.3
145.5
174.3
420.3
135.9
113.0
117.0
137.5
74.7
149.1
136.9
132.8
147.5
174.7
427.3
136.3
119.9
128.2
137.3
74.5
150.0
138.1
133.3
148.4
175.2
433.5
138.0
121.2
124.6
136.0
74.5
145.9
132.4
133.2
147.5
174.7
446.2
136.7
1709
123.4
133.8
75.4
154.0
144.0
133.5
147.3
175.5
454.1
136.3
119.2
119.6
134.5
76.4
158.9
34
35
36
Intermediate products, total .
Construction supplies
Business supplies
14.2
5.3
8.9
115.1
121.7
1111
114.1
121.7
109.6
114.1
122.3
109.2
114.7
121.8
110.6
114.9
122.2
110.6
114.7
122.2
110.2
114.6
121.2
110.6
115.3
122.7
111.0
115.2
120.4
112.2
116.3
121.3
113.4
117.3
123.6
113.5
117.3
122.8
114.1
116.9
123.8
112.9
117.4
124.3
113.3
39.5
20.8
4.0
7.6
9.2
3.1
8.9
1.1
1.8
3.9
2.1
9.7
6.3
3.3
134.1
158.2
139.1
221.9
125.5
120.6
113.0
109.3
112.6
115.2
110.2
103.9
101.6
108.3
131.0
152.2
136.3
206.1
123.5
118.3
112.6
108.0
112.0
115.0
110.1
103.8
102.5
106.2
131.3
153.0
135.9
210.0
123.2
118.2
112.5
106.3
112.5
114.8
110 4
103.4
101.9
106.2
132.5
155.1
137.1
213.4
124.7
118.8
113.0
109.4
112.6
115.4
109 7
103.7
101.7
107.6
132.4
155.4
134.7
216.7
124.5
119.9
111.8
106.1
112.6
113.8
109.5
103.7
102.1
106.8
133.0
156.9
136.2
220.0
125.0
121.2
111.9
108.1
110.9
113.8
110.8
103.2
101.0
107.3
134.9
159.3
139.2
224.6
125.9
121.1
113.5
112.3
113.8
115.1
110.1
104.6
102.3
109.0
134.9
160.3
140.3
227.6
126.0
121.8
112.3
108.4
114.3
113.9
108.6
103.9
102.4
106.8
136.1
161.3
140.7
229.6
126.6
121.7
113.3
111.4
112.7
115.6
109.5
105.5
102.2
111.8
136.7
163.2
141.8
233.3
127.8
122.5
113.1
111.9
113.4
115.0
109.0
104.7
101.7
110.6
137.7
165.0
142.3
237.9
128.8
124.9
114.4
111.0
112.2
116.5
113.7
103.9
101.4
108.6
138.7
166.4
146.7
240.7
128.2
122.0
115.8
112.5
113.6
118.9
112.8
103.9
100.5
110.4
138.9
167.7
145.7
244.8
129.1
124.2
114.6
108.3
112.9
119.0
109.3
103.5
101.4
107.5
139.0
167.8
144.3
247.1
128.7
123.6
114.9
109.5
112.6
119.2
110.2
103.3
100.6
108.3
97.1
95.1
124.4
123.8
121.9
121.5
122.3
121.9
123.2
122.7
123.4
123.0
123.6
123.1
124.8
124.3
125.1
124.6
125.4
124.8
126.5
125.9
127.2
126.6
127.7
126.9
127.9
127.2
128.1
127.4
98.2
27.4
26 2
121.9
113.2
114 8
119.8
111.8
113.7
120.2
112.1
114.2
120.7
112.8
113.6
120.9
113.1
114.0
121.1
112.5
114.0
122.0
113.5
114.1
122.6
113.4
114.9
122.9
113.0
114.7
123.8
114.6
115.9
124.8
115.0
117.0
125.1
114.7
116.4
125.2
115.5
117.6
125.2
115.4
117.2
138.6
139.5
141.0
141.9
143.4
145.2
147.5
147.3
149.0
149.7
151.3
150.4
125.1
139.6
126.0
140.1
126.0
141.6
126.9
141.4
127.7
142.5
128.6
144.6
131.2
144.8
130.8
145.8
131.8
147.0
133.5
148.6
134.3
150.0
133.1
150.4
37 Materials .
38 Durable goods materials
39
Durable consumer parts . . . .
40
Equipment parts
41
Other
42
Basic metal materials
43 Nondurable goods materials. . .
44
Textile materials
45
Paper materials
46
Chemical materials
47
Other
48 Energy materials
49
Primary energy
50
Converted fuel materials. . . .
SPECIAL AGGREGATES
51 Total excluding autos and trucks
52 Total excluding motor vehicles and parts
53 Total excluding computer and office
equipment
54 Consumer goods excluding autos and trucks
55 Consumer goods excluding energy
56 Business equipment excluding aulos and
trucks
57 Business equipment excluding computer and
office equipment
58 Materials excluding energy
12.0
12.1
29.8
129.1
143.7
132.7
150.6
Selected Measures A45
2.13
INDUSTRIAL PRODUCTION
1992
proportion
SIC 2
code
Group
Indexes and Gross Value1—Continued
1997
1998
1997
avg.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct
Nov.r
Dec.1
Jan.
Feb11
Index (1992 - 100)
MAJOR INDUSTRIES
59 Ibtal index
100.0
124.5
122.1
122.5
123.1
123.3
123.5
124.5
125.2
125.6
126.5
127,5
127.9
128.0
128.1
60 Manufacturing
61 Primary processing
62 Advanced processing
85.4
26.5
58.9
127.0
118.1
131.4
124.4
116.9
128.1
124.9
117.2
128.6
125.4
117.7
129.2
125.7
117.7
129.6
126.1
117.7
130.2
126.9
118.3
131.2
127.9
118.5
132.5
128.0
118.6
132.7
129.1
118.9
134.1
130.4
120.0
135.5
130.9
120.3
136.2
131.3
120.3
136.7
131.3
120.2
136 8
63
64
65
66
45.0
2.0
1.4
142.3
114.9
122.5
137.8
114.2
120.6
138.7
114.9
120.7
139.5
1159
123.5
140.1
116.4
123.3
141.2
117.0
123.5
142.4
116.1
124.2
144 3
115.4
121.1
144.4
113.3
122.0
145.5
112 9
123 0
147.7
117.0
124.1
148 4
114 2
124.5
148.8
113.4
123.2
148.9
114.4
124.2
2.1
3.1
] 7
.1
1.4
5.0
120.5
124.4
122.7
115^9
126.4
122.9
118.9
121.6
119.9
1124
123.5
121.7
119.5
121.8
119.6
114.0
124.5
122.1
121.1
122.3
121.2
I15J
123.5
122.5
119.4
124.2
123 9
1154
124.6
122.7
120.0
124.9
122 6
114.9
127.7
121.9
120.9
125.2
122.2
115'5
128.8
122.4
120.5
125.5
121.8
116J
129.9
122.8
121.2
125.9
124.5
119^2
127.7
122.7
121.0
127.4
126.4
1177
128.6
124.4
122.1
128.9
127.0
1209
131.1
124.7
123.6
126.9
125 3
119.2
128.8
125.7
122.1
128.4
127.5
122.8
129.6
125.6
122.6
127.8
127.1
121.0
128.6
125.4
79
80
Durable goods
Lumber and products
24
Furniture and fixtures
25
Stone, clay, and glass
products
32
Primary metals
33
Iron and steel
331.2
Raw sleel
331PT
Nonferrous
333-6,9
Fabricated metal products.. .
34
Industrial machinery and
equipment
35
Computer and office
equipment
357
Electrical machinery
36
Transportation equipment. . .
37
Motor vehicles and parts .
371
Autos and light trucks .
371PT
Aerospace and
miscellaneous
transportation
equipment
372-6,9
Instruments
38
Miscellaneous
39
81
82
83
84
85
86
87
88
89
90
91
Nondurable goods
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
Printing and publishing
Chemicals and products . . . .
Petroleum products
Rubber and plastic products .
Leather and products
67
68
69
70
71
72
73
74
75
76
77
78
8.0
171.4
164.0
165.1
167.8
168.0
168.8
172.2
175.9
173.7
176.5
177.7
178 8
180.1
180.6
1.8
7.3
9.5
4.9
2.6
381.8
231.5
115.6
137.2
128.3
336.6
2174
111.4
133.3
127.2
344.2
220.8
112.3
134.0
127.8
354.1
223.7
110.7
129 7
117.8
361.4
226.3
110.8
129.2
120.6
372.3
229 7
113.0
132 s
122.4
388.5
235.5
112.2
130.0
115.0
403.9
236.8
117 0
138.9
129.5
412.0
237.5
118.8
141.2
132.3
418.0
240.8
118.3
139.6
1304
425.7
247.4
121.6
145.0
137.7
432.4
249.9
123.4
146 6
132.5
445.6
252.1
123.0
144.9
130.6
453.7
254.4
121.6
141.8
126.2
4.6
5.4
1.3
94.4
108.0
125.9
89.9
107.2
125.0
91.0
106.5
124.7
92.0
106.6
125.1
92.7
107.6
125.5
93.8
107.9
126.0
94.6
108.0
127.0
95.5
109.2
126.7
96.8
108.9
126.1
97.3
109.7
126.5
97.9
109.5
26.2
100.6
108 7
128.5
101.6
1094
128.0
101.6
110.1
127,9
20
21
22
23
26
27
28
29
30
31
40.4
9.4
1.6
1.8
2.2
3.6
6.7
9.9
1 4
3.5
.3
111.1
109.6
112.7
109.6
99.6
112.9
104.8
115.3
109.4
126.4
73.7
1 10.4
109.4
113.0
107.0
99.5
111.9
103.3
114 6
108.0
125k)
76.0
110.5
110.0
114.2
108.0
100.1
112.4
103.6
113.6
108.0
125.5
76.6
110.8
109.2
113.0
109.2
99.8
112.4
104.4
115.2
110 I
1244
75.9
110.7
109.2
111.5
107.2
99.8
112.6
104.5
114.5
111.4
1254
75.3
110.5
108.8
109.0
109.1
99.6
111.7
104.1
114.6
111.3
125^6
74.0
110.9
110.0
110.5
110.7
99.7
114.2
I04.I
114.3
108.9
126.0
74.0
111.0
108 9
112.5
110.7
99.1
114.4
104.4
114.5
109.7
127.9
71.2
111.3
108.6
112.0
111.4
99.1
113.7
105.1
115.6
110.1
127^6
70.9
112.2
109.2
118.8
111.6
99.3
112.8
1067
116.7
1112
127 4
72.4
112.6
110.9
115.9
112.5
98.6
113.6
107.4
116.5
108.6
129.6
71.0
112.9
11 1.0
110.1
110.5
99.3
114.0
106.9
118.5
109 7
129^2
71.1
113 4
112.5
112.3
112.3
98.9
112.7
106.2
119.0
110.4
129.8
69.7
113.2
112.2
111.7
111.7
98.0
112.6
1059
1 19 6
109 9
129 4
70.2
10
12
13
14
6.9
.5
1.0
4.8
.6
106.0
106.9
109.9
103.2
118.8
106.0
106.2
110.4
102.8
123.5
106.7
106.4
107.0
104.3
123.6
105.5
105.?
105.4
103.8
116.8
106.7
105.9
115.9
103.4
118.2
105.7
109 9
107.4
102.9
120.9
106.5
105.2
112.1
103.9
117.8
1063
106.0
107.7
104.1
119.9
106.5
105.3
109.5
104.3
117.7
105.9
111.1
109.6
103 1
116.2
106.1
113.2
111.2
102.6
119.2
105.5
103.6
117.4
101.4
120.2
107.1
106.4
116.0
103.4
122.6
106.8
106.2
109.1
104.1
123.4
491493PT
492.493PT
7.7
6.2
1.6
112.6
113.1
111.4
110.3
111.0
107.9
109.6
110.6
105.4
112.5
112.7
111.5
111.8
110.4
117.1
1109
110 7
111.9
113.8
113.8
113.5
113.0
113.1
112.5
115.1
115.7
112.7
116.9
118.1
1119
115.3
114.7
117.8
114.9
114.2
117.3
111.3
112.1
108.1
112.3
113.3
108.5
80.5
126.4
123.9
124.3
125.2
125.5
125.7
126.7
127.2
127.3
1284
29.4
129.9
130.5
130.7
83.6
124.1
121.8
122.2
122.7
122.9
123.2
123.9
124.8
124.9
125.9
127.2
127.6
128.0
127.9
92 Mining
93 Metal
94 Coal
95 Oil and gas extraction
96 Stone and earth minerals
97 Unities
98 Electric
99 Gas
SPECIAL AGGREGATES
100 Manufacturing excluding motor
vehicles and parts
101 Manufacturing excluding office
and computing machines . . .
Gross value (billions of 1992 dollars . annual rates)
MAJOR MARKETS
102 Products, total
2,001.9 2,373.3 2,344.1 2,355.4 2,353.4 2,365.8 2,365.3 2,368 4 2,402.0 2,396.9 2,416.1 2,442.2 2,436.7 2,442.2 2,440.6
103 Final
104 Consumer goods
105 Equipment
106 Intermediate
1.552.1
1,049.6
502 5
449.9
1,856.0
1,195.7
660.0
518.1
1.827.3 1,838.7 1,832.9 1,844.4
1,187.6 1,191.4 1,187.7 1,194.1
639.2
646.8
644.8
649.8
517.0
517.2
520.6
521.7
1. Data in (his table also appear in the Board's G, 17 (4!9) monthly statistical release. For
the ordering address, see the inside front cover. The latest historical revision of the industrial
production index and the capacity utilization rates was released in December 1997. The recent
annual revision is described in an article in the February 1998 issue of the Bulletin. For a
description of the aggregation methods for industrial production and capacity utilization, see
"Industrial Production and Capacity Utilization: Historical Revision and Recent Develop-
1,844.6 1,849.1
1,190.2 1.191.0
657.8
654.1
521.0
519.9
1.879.3 1,875.6 1.890.6 1,911.0
1,205.2 1,203.3 1,215.9 1,224.1
686.9
674.0
672.3
674.5
523.7
522.2
526.5
532.3
1.906.5
1,218.2
688.5
531.2
1.914.7
1,226.6
688.2
528.9
1.910.9
1.223.5
687.5
530.8
ments," Federal Reserve Uniterm, vol. 83 (February 1997), pp. 67-92. For details about ihc
construction of individual industrial production series, see "Industrial Production. 198SJ
Developments and Historical Revision." Federal Reserve Bulletin, vol. 76, (April 1990), pp.
187-204.
2. Standard industrial classification.
A46
2.14
Domestic Nonfinancial Statistics • May 1998
HOUSING A N D CONSTRUCTION
Monthly figures at seasonally adjusted annual rates except as noted
1997
Item
1995
1996
1998
1997'
May
Apr.
June
July
Aug.
Sept.
Oct.
Nov.'
Dec.'
Jan.
Private residential real estate activity (thousands of units except as noted)
NEW UNITS
6
Two-family or more
7 Under construction at end of period1
8 One-family . .
9 Two-family or more
10 Completed
11 One-family
12 Two-family or more
13 Mobile homes shipped
1,333
997
335
1,354
1,076
278
776'
554
222'
1,319
1,073
247'
341
1,426
1,070
356
1,477
1,161
316
820'
584
235
1,405'
1,123'
283
361
1.442
1,056
387
1.474
1,134
340
834
570
264
1,407
1,122
285
354
1,442
1,060
382
1,480
1,134
346
814'
564'
250'
1,457'
1,155'
302
366
1,432
1,053
379
1,404
1.095
309
815
565'
250'
1,387'
1,098'
289'
354
1,402
1,049
353
1,502
1,132
370
828'
566
262'
1,307'
1,097'
210'
353
1,414
1,030
384
1,461
1,144
317
836'
570'
266
1,331'
1,074'
257'
356
1,397
1,027
370
1,383
1.076
307
834'
567'
267
1,335'
1,062'
273'
354
1,460
1,065
395
1,501
1,174
327
843'
571
272'
1,433'
1,133'
300'
351
1,487
1,087
400
1,529
1,124
405
853'
574'
279'
1,384'
1,063'
321'
349
1,440
1,061
379
1,523
1,167
356
862
575
287
1,432
1,145
287
352
1,482
1,071
411
1,540
1,130
410
870
578
292
1,410
1,093
317
353
1,526
1,133
393
1,543
1,218
325
885
589
296
1,288
999
289
362
Merchant builder activity m
one-family units
14 Number sold
15 Number for sale at end of period1
667
374
757
326
803
286
762'
291
764
289'
810'
288
808'
288
799'
286
809'
284'
805'
284'
877
280
795
281
877
282
133.9
158.7
140.0
166.4
145.9
175.8
150.0
179.5
141.0
170.7
145.0
179.4
145.9
175.5
144.0
170.7
146.3
177.5
141.5'
172.9'
145.0
175.5
143.0
173.6
148.0
179.6
18 Number sold
3.812
4,087
4,215
4,040
4,190
4,120
4,180
4,280
4,300
4,380
4.390
4,370
4,370
Price of units sold (thousands
of dollars)'
19 Median
20 Average
113.1
139.1
118.2
145.5
124.1
154.2
120.7
150.4
123.1
153.1
127.2
158.4
126.5
157.6
127.5
159.1
125.8
155.4
124.4
154.7
124.3
155.0
125.9
157.5
126.1
156.8
1 Permits authorized
3
Two-family or more
4 Started
Price of units sold {thousands
of dollars)2
16 Median
17 Average
EXISTING UNITS (one-family)
Value of new construction (millions of dollars)3
CONSTRUCTION
21 Total put in place
534,463
567,179
600,034
596,907
595,763
594,195
603,002
603,684
605,748
611,805
611,343
614,574
619,146
22 Private
23
Residential
407,370
231,230
176,140
32,505
68.223
27,089
48,323
435,929
246,659
189,271
31,997
74,593
30,525
52,156
461,375
259,640
201,735
30,642
80,857
36,977
53,260
457,604
259,917
197,687
29,331
76,545
38,229
53,582
459,882
259,662
200,220
30,501
78,670
37,738
53,311
456,927
257,277
199,650
31,046
79,009
35,775
53.820
464.326
258,803
205,523
31,796
82,346
36,672
54.709
465,236
259,958
205.278
31,480
81.552
37,274
54,972
468,822
263,799
205,023
30,675
80,551
38,729
55,068
469,567
265,717
203.850
29.964
81.424
37.694
54.768
470,272
267.489
202,783
29.239
81,775
37,744
54,025
474,704
271,015
203,689
29,121
82,306
38,039
54,223
480,103
273,755
206.348
29.323
82,815
38,686
55,524
127,092
2.983
36.319
6,391
81,399
131,250
2,541
37,898
5,807
85.005
138,660
2.562
41.120
5.475
89.503
139,304
2,408
42,356
5,134
89,406
135,882
2.548
40,694
5,242
87,398
137.268
2.580
41,531
4,952
88,205
138,676
2,738
41,087
5,002
89.849
138,448
2.767
41.715
5.469
88.497
136,926
2,451
40,126
6,177
88,172
142,238
2,794
39,400
4,899
95,145
141,071
2.782
44,271
5,264
88,754
139,870
2.338
41,856
5,917
89.759
139,043
2.680
43,756
5,131
87,476
25
26
27
28
Industrial buildings
Commercial buildings
Other buildings
Public utilities and other
29 Public
30
Military
31
Highway
32
Conservation and development
33
Other
1. Not at annual rates.
2. Not seasonally adjusted.
3. Recent data on value of new construction may not be strictly comparable with data for
previous periods because of changes by the Bureau of the Census in its estimating techniques.
For a description of these changes, see Construction Reports (C-3O-76--5), issued by the
Census Bureau in July 1976.
SOURCE. Bureau of the Census estimates for all series except (1) mobile homes, which are
private, domestic shipments as reported by the Manufactured Housing Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices of existing units, which are
published by the National Association of Realtors. All back and current figures are available
from the originating agency. Permit authorizations are those reported to the Census Bureau
from 19,000 jurisdictions beginning in 1994.
Selected Measures
2.15
A47
CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data except as noted
Change from 12
months earlier
Change from 3 months earlier
(annual rate)
Item
Change rom 1 month earlier
1997
1997
Feb.
1997
Index
level.
Feb
1998 '
1998
1998
Feb
Mar.
June
Sept.
Dec.
Oct.
Nov.
Dec.
/an.
Feb.
CONSUMER PRICES 2
(1982-84=100)
1 All items
3.0
1.4
1.5
2.3
1.5
.2
.1
.1
.0
.1
161.9
2 Food
3 Energy items
4 All items less food and energy
5
Commodities
6
Services
3.8
7,8
2,5
1.0
3.1
1.9
-8.8
2.3
.4
3.1
-.3
-1.4
2.2
8
3 1
2.1
-11.8
2.6
.6
3.1
2.8
8.3
1.7
-.3
2.6
1.5
-7 7
2.4
.6
3.3
3
2
.1
.3
.1
.0
.1
.1
2
.0
-1.8
.2
.0
.3
3
-2.4
.2
I
.2
.0
-2.2
.3
.2
.3
159.4
103.2
172.1
142.7
188.8
7 Finished goods
8
Consumer foods
9
Consumer energy
10 Other consumer goods
11
Capital equipment
2.2
2.4
9.5
.7
.4
-1.6
-.1
-11.0
.5
-.7
-1.8
.0
-11.8
.6
.0
-3.0
-3.5
-13.0
-.6
-.9
1.2
-1.5
6.0
1.7
.6
-1.2
.9
-6.1
.0
-1.7
0'
.7'
-.5'
.1
-.3'
- 1'
-.4'
_2
-.1
-.8
.0
-.2
-.7
-.4
-3.7
-.1
-.1
-.1
.4
-1.8
.1
-.1
130.1
133.6
75.8
145.8
137.9
Intermediate materials
12 Excluding foods and feeds
13 Excluding energy
1 1
-.1
-1.5
.0
-1.3
.6
-1.6
.3
.6
.6
-.6
.0
.0
-.1'
2
.1
-.3
-.5
-.1
-.2
124.3
134.2
-5.3
-26.2
-5.0
-4.1
-75.5
12.5
-10.8
11.3
-3.7
-5.0
21.8
.3
3.3
1.0
-7.9
1.1'
11.5'
-.1'
-.3'
2.8'
-.5'
.0
-12.6
-1.4
-3.3
-7.3
-2.2
-.7
-6.5
.1
105.1
72.3
151.0
l.S
PRODUCER PRICES
(1982=100)
Crude materials
14 Foods
15 Energy
16 Other
-3.5
18.5
-2.1
1. Not seasonally adjusted.
2. Figures for consumer prices are for a)] urban consumers and reflect a rental-equivalence
measure of homeownership.
-.1
.1'
SOURCE. U.S. Department of Labor, Bureau of Labor Statistics.
A48
2.16
Domestic Nonfinancial Statistics • May 1998
GROSS DOMESTIC PRODUCT AND INCOME
Billions of currenl dollars except as noted; quarterly data at seasonally adjusted annual rates
1997
1996
Account
1995
1997'
1996
Q4
Ql
Q2
Q3
Q41
GROSS DOMESTIC PRODUCT
1 Total
7,265.4
7,636.0
8,081.0
7,792.9
7,933.6
8,034.3
8,124.3
8,231.8
Bx source
Personal consumption expenditures
Durable goods
Nondurable goods
Services
4,957.7
608.5
1,475.8
2.873.4
5,207.6
634.5
1,534.7
3.038.4
5,488.1
659.1
1,592.1
3,236.9
5,308.1
638.2
1,560.1
3.109.8
5,405.7
658.4
1,587.4
3,159.9
5,432.1
644.5
1,578.9
3,208.7
5.527.4
667.3
1,600.8
3,259.3
5,587.2
666.2
1,601.4
3,319.6
6 Gross private domestic investment
7
Fixed investment
8
Nonresidential
9
Structures
10
Producers' durable equipment
11
Residential structures
1,038.2
1.008.1
723.0
200.6
522.4
285.1
1,116.5
1,090.7
781.4
215.2
566.2
309.2
1.240.9
1,172.6
845.4
229.9
615.5
327.2
1.151.1
1.119.2
807.2
227.0
580.2
312.0
1,193.6
1,127.5
811.3
227.4
583.9
316.2
1,242.0
1,160.8
836.3
226.8
609.5
324.6
1,250.2
1,201.3
872.0
232.9
639.1
329.3
1,277.8
1,200.8
861.9
232.5
629.4
338.9
Change in business inventories
Nonfarm
30.1
38.1
25.9
23.0
68.3
61.7
31.9
28.7
66.1
62.2
81.1
74.9
48.9
40.9
77.0
68.6
14 Net exports of goods and services
15 Exports
16 Imports
-86.0
818.4
904.5
-94.8
870.9
965.7
-100.8
958.0
1,058.8
-88.6
904.6
993.2
-98.8
922.2
1,021.0
-88.7
960.3
1,049.0
-111.3
965.8
1,077.1
-104.2
983.8
1,088.0
17 Government consumption expenditures and gross investment
18 Federal
19 State and local
1,355.5
509.6
846.0
1,406.7
520.0
886.7
1.452.7
523.8
928.9
1,422.3
517.6
904.7
1,433.1
516.1
917.0
1.449.0
526.1
923.0
1,457.9
525.7
932.3
1,470.9
527.4
943.5
By major type of product
20 Final sales total
21 Goods
22
Durable
23
Nondurable
24
Services
25
Structures
7,235.3
2.637.9
1,133.9
1,503.9
3,980.7
616.8
7,610.2
2,759.3
1,212.0
1,547.3
4,187.3
663.6
8.012.7
2.875.4
1.283.0
1.592.4
4.433.1
704.1
7,761.0
2,795.0
1,233.5
1,561.5
4,282.7
683.3
7,867.4
2,838.4
1.248.0
1,590.4
4,338.2
690.8
7,953.2
2,854.9
1,275.3
1,579.6
4,400.1
698.2
8.075.3
2,903.2
1,305.3
1,597.9
4,462.3
709.8
8,154.7
2.905.2
1,303.5
1,601.7
4,531.9
717.6
30.1
29.1
1.1
25.9
16.9
9.0
68.3
32.4
35.9
31.9
-1.1
33.0
66.1
31.8
34.3
81.1
46.8
34.4
48.9
18.6
30.3
77.0
32.5
44.6
6,742.1
6,928.4
7,189.6
7,017.4
7,101.6
7,159.6
7,214.0
7,283.3
30 Total
5.912.3
6.254.5
n.a.
6,376.5
6,510.0
6,599.0
6,699.6
n.a.
31 Compensation of employees
32
Wages and salaries
33
Government and government enterprises
34
Other
"
35
Supplement to wages and salaries
36
Employer contributions for social insurance
37
Other labor income
4,215.4
3,442.6
623.0
2.819.6
772.9
.166.0
406.8
4,426.9
3,633.6
642.6
2,991.0
793.3
385.7
407.6
4,703.5
3,878.5
665.3
3.213.2
825.0
408.4
416.6
4,520.7
3,718.0
648.9
3,069.0
802.7
393.6
409.1
4,606.3
3.792.7
657.8
3.134.9
813.6
401.3
412.3
4,663.4
3,842.7
662.0
3.180.8
820.7
405.6
415.1
4,725.2
3,897.3
667.7
3,229.6
827.9
410.2
417.7
4,819.2
3,981.2
673.8
3,307.4
837.9
416.6
421.4
489.0
465.5
23.4
520.3
483.1
37.2
544.5
503.7
40.7
528.3
487.9
40.4
534.6
494.4
40.2
543.6
500.0
43.6
547.2
506.3
40.9
552.5
514.2
38.2
2
3
4
5
12
13
26 Change in business inventories
27
Durable goods
28
Nondurable goods
MEMO
29 Total GDP in chained 1992 dollars
NATIONAL INCOME
38 Proprietors' income'
...
39 Business and professional'
40
Farm1
41 Rental income of persons2
132.8
146.3
148.0
149.2
149.0
148.7
148.0
146.4
42 Corporate profits1
43
Profits before tax
44
Inventory valuation adjustment
45 Capital consumption adjustment
650.0
622.6
-24.3
51.6
735.9
676.6
-2.5
61.8
n.a.
n.a.
5.7
69.8
747.8
680.0
3.3
64.4
779.6
708.4
3.5
67.7
795.1
719.8
5.9
69.4
827.3
753.4
3.6
70.3
n.a.
n.a.
9.6
71.6
46 Net interest
425.1
425.1
n.a.
430.6
440.J
448.1
451.8
n.a.
1. With inventory valuation and capital consumption adjustments
2. With capital consumption adjustment.
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. U.S. Department of Commerce, Survey of Current Business.
Selected Measures
2.17
A49
PERSONAL INCOME AND SAVING
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
04
Q2
Ql
Q4r
Q3
PERSONAL INCOME AND SAVING
1 Total personal income
6,150.8
6,495.2
6,874.2
6,618.4
6,746.2
6,829.1
6,906.9
7,014.6
2 Wage and salary disbursements
3
Commodity-producing industries
4
Manufacturing
5
Distributive industries
6
Service industries
7
Government and governmenl enterprises
3,429.5
864.4
648.4
783.1
3,632.5
909.1
674.7
823.3
1,257.5
642.6
3.877.3
960.2
705.9
876.2
3,716.9
927.8
685.6
840.6
1,299.5
648.9
3,791.5
942.9
694.1
856.8
1,334.1
657.8
3,841.6
952.8
700.3
867.0
1,359.8
662.0
3.896.1
961.4
706.0
880.8
1.386.3
667.7
3.980.1
983.9
723.4
900.4
1,421.9
673.8
407.6
520.3
416.6
544.5
503.7
40.7
148.0
321.5
768.8
1,121.1
566.7
409.1
528.3
487.9
40.4
149.2
295.2
749.8
1,081.5
412.3
534.6
494.4
40.2
149.0
312.5
757.2
1,107.2
558.9
415.1
543.6
500.0
43.6
148.7
318.3
766.1
1,117.0
564.4
417.7
547.2
506.3
40.9
148.0
324.5
772.6
1.125.7
569.4
421.4
552.5
318.2
321.3
324.8
6.746.2
6.829.1
6,906.9
8
9
10
11
12
13
14
15
16
17
Other labor income
Proprietors' income'
Business and professional1
Farm1
Rental income of persons2
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
19
LESS. Personal tax and nontax payments
20 EQUALS: Disposable personal income
21
LESS: Personal outlays
22 EQUALS: Personal saving
MEMO
Per capita (chained 1992 dollars)
23 Gross domestic product
24 Personal consumption expenditures .
25 Disposable personal income
26 Saving rate (percent)
1,159.0
623.0
406.8
489.0
132.8
251.9
718.9
1,015.0
483.1
37.2
146.3
291.2
735.7
1,068.0
507.8
537.6
293.1
306.3
6,150.8
6,495.2
795.1
886.9
465.5
23.4
5,355.7
5,608.3
5,101.1
5,368.8
254.6
239.6
25,615.7
17,459.2
18,861.0
26,085.8
17,748.7
19,116.0
1,375.5
665.3
323.7
6,874.2
988.7
5,885.5
5,660.8
224.7
26,837.1
18,175.8
19,494.0
545.6
311.5
6,618.4
514.2
38.2
146.4
330.7
779.3
1,134.7
574.1
330.4
7,014.6
955.7
979.2
998.0
5,790.5
5,849.9
5,908.9
5,574.6
5,602.8
5,700.8
215.9
247.0
208.2
26.331.6
17,847.8
19,152.0
26,597.8
18,045.2
19,331.0
26,765.0
18,053.9
19,439.0
26,897.9
18,255.7
19,518.0
1,303.0
1,332.9
1,396.9
1,411.6
n.a.
1,131.4
1,134.0
1,178.1
1,159.6
n.a.
208.2
230.0
3.6
227.8
n a.
9.6
484.5
244.7
922.6
5,695.8
5,475.4
220.4
1,021.8
5,992.8
5,764.9
227 8
27,095.7
18,353.9
19,688.0
4.8
GROSS SAVING
27 Gross saving
28 Gross private saving . .
1,165.5
1,267.8
1,093.1
1,125.5
29 Personal saving
30 Undistributed corporate profits'
31 Corporate inventory valuation adjustment
254.6
172.4
-24.3
239.6
202.1
-2.5
224.7
n.a
5.7
220.4
212.6
3.3
215.9
21L5
3.5
247.0
217.6
5.9
Capital consumption allowances
32 Corporate
33 Noncorporate
428.9
224.1
452.3
230.5
475.6
241.2
462.0
235.2
467.4
238.0
472.6
239.7
478.0
242.4
34 Gross governmenl saving
35
Federal
36
Consumption of fixed capital
37
Current surplus or deficit ( - ) , national accounts
38
State and local
39
Consumption of fixed capital
40
Current surplus or deficit ( - ) . national accounts
72.4
-103.6
70.9
-174.4
176.0
72.9
103.1
171.6
-5.9
71.3
-77.1
177.5
77.2
100.4
198.9
15.9
71.4
-55.5
182.9
78.2
104.7
218.8
34.7
71.5
-36.8
184.1
79.2
104.9
251.9
-39.3
71.2
-110.5
181.5
76.2
105.3
71.6
-10.8
191.1
79.7
111.4
41 Gross investment
1,137.2
1,207.9
1,243.5
1,268.6
1,323.4
1,308.4
42 Gross private domestic investment . . .
43 Gross government investment
44 Net foreign investment
1.038.2
213.4
-114.4
1,116.5
224.3
-132.9
1,151.1
225.3
-132.9
1,193.6
223.3
-148.4
1,242.0
227.4
-146.0
1.250.2
227.1
- 168.9
45 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
142.3
n.a.
79.5
1,240.9
226.0
n.a.
60.8
-103.2
SOURCE. US Department of Commerce, Survey of Current Business
n.a.
71.8
n.a.
80.8
1.277.8
226.0
A50
3.10
International Statistics • May 1998
U.S. INTERNATIONAL TRANSACTIONS
Summary
Millions of dollars; quarterly data seasonally adjusted except as noted1
1997
1996
Item credits or debits
1997
Q4
1 Balance on current account
2
Merchandise trade balance
3
Merchandise exports
4
Merchandise imports
5
Military transactions, net
6
Other service transactions, net
7
Investment income, net
8
U.S. government grants
9
U.S. government pensions and other transfers
10 Private remittances and other transfers
-129.095
-173,560
575,871
-749,431
3.866
67,837
6,808
-11,096
-3,420
-19,530
-148,184
-191,170
612,069
-803,239
3,786
76,344
2,824
-14,933
-4,331
-20,704
-166.446
-36,874
-198.934
678,348
-877,282
3,830
81,462
-14,277
-11,688
-4,075
-48,190
157,846
-206,036
1,295
20,697
1,250
-22.763
-5,499
-1,050
-5,377
Q3
-39,916'
-49,844'
162,341'
-212,185'
437
20,083'
-2,015'
-2.109
-37,795'
-47,188'
171,227'
-218,415'
1.048
20,470'
-3,270'
-2,245
-1,033'
-5,577'
-43,114
-52,001
170,255
-222,256
1,398
20,696
-4,137
-2,231
-1,031
-5.808
Q4I
-45.619
-49,901
174,525
-224.426
947
20,215
-4,856
-5,103
-1,023
-5,898
11 Change in U.S. government assets other than official
reserve assets, net (increase. - )
-549
-690
177
-284
-21
-268
461
12 Change in U.S. official reserve assets (increase, - ) .
13 Gold
14 Special drawing rights (SDRs)
15 Reserve position in International Monetary Fund .
16 Foreign currencies
-9,742
0
-808
-2,466
-6,468
6,668
0
370
-1.010
0
4,480
0
72
-236
0
-1,280
7,578
-350
-3,575
2,915
-315
0
-146
-28
-141
1,055
3,353
54
-157
-730
0
-139
-463
-128
-4,524
0
-150
-4,221
-153
-296,916
-75,108
-34,997
-100.074
-86,737
-358,422
-98,186
-64,234
-108.189
-87,813
-426,105
-151,076
-76,298
-79,287
-119,444
-153,837
-66,657
-26,115
-30,200
-30,865
-132,756'
-62,026
-29,466
-14,510
-26,754'
-90,760'
-27,947
-3,984
-21,841
-36,988'
-110,427
-30,602
-17.848
-39,214
-22,763
-92.159
-30,501
22 Change in foreign official assets in United States (increase, + )
23
U.S. Treasury securities.
24
Other U.S. government obligations.
25
Other U.S. government liabilities
26
Other V.S. liabilities reported by U.S. banks'
I'..'......','.
27
Other foreign official assets
110,729
68,977
3,735
744
34.008
3,265
122,354
111,253
4,381
720
4,722
1,278
18,157
-7.019
4,048
539
21,274
-685
33,097
33,564
1,854
160
-4,270
1,789
28.891
23,289
651
478
7,698
-3,225
654
4,536
900
21,867
6,686
2,667
-510
12,391
633
-27,227
-24.886
86
-83
-3,351
1.007
28 Change in foreign private assets in United States (increase, +)
29
U.S. bank-reported liabilities3
30
U.S. nonbank-reported liabilities
31
Foreign private purchases of U.S. Treasury securities, net
32 Foreign purchases of other US. securities, net
33
Foreign direct investments in United States, net
340,505
30,176
34,588
111,848
96,367
67.526
425,201
9,784
31,786
172,878
133,798
76,955
672.340
142.545
44,740
161,482
38,960
-2,912
75,326
32,447
17,661
153,391'
17,387
15,210
51,289
38,820
30,685'
148,433'
28,100
-7,916
49,915
51,682
26.652'
161,425
10,102
22,046
42,919
60,409
25,949
209,090
86,956
34 Allocation of special drawing rights
35 Discrepancy
36
Due to seasonal adjustment
37
Before seasonal adjustment
0
-14.931
0
-46,927
0
-97,113
0
-3,269
2,669
-5,938
0
-14.069'
7,287'
-21,356
0
-U.OOtf
-1,485'
-12.515
0
-29,482
-8,489
-20,993
0
-39,566
2.683
-42,249
17 Change in U.S. private assets abroad (increase, —).
18 Bank-reported claims 3
19 Nonbank-reported claims
20
U.S. purchases of foreign securities, net
21
U.S. direct investments abroad, net
189,273
107,928
-97,113
-133
-5,374
-12,108
644
-3,722
-32,936
43,731
38.362
24,641
MEMO
Changes in official assets
38 U.S. official reserve assets (increase, —)
39 Foreign official assets in United States, excluding line 25
(increase, t-)
40 Change in Organization of Petroleum Exporting Countries official
assets in United States (part of line 22)
-9,742
6,668
-1,010
-315
4,480
-236
-730
-4,524
109.985
121,634
17,618
32,937
28,413
-6,028
22,377
-27,144
4,239
12,278
12,782
3,315
9,272
2,287
2,619
-1,396
1. Seasonal factors are not calculated for lines 12-16, 18-20, 22-34, and 38-40.
2. Data are on an international accounts basis. The data differ from the Census basis data,
shown in table 3.11, for reasons of coverage and timing. Military exports are excluded from
merchandise trade data and are included in line 5.
3. Reporting banks include all types of depository institutions as well as some brokers and
dealers.
4. Associated primarily with military sales contracts and other transactions arranged with
or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of private
corporations and state and local governments.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current
Business.
Summary Statistics A51
U.S. FOREIGN TRADE1
3.11
Millions of dollars; monthly data seasonally adjusted
1997'
Item
1995
1996
1998
1997r
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.p
1 Goods and services, balance
2
Merchandise
-101,857
-173,560
71,703
-111.040
-191,170
80,130
-113,684
-198,975
85,291
-9,919
-16,867
6.948
-8,993
-16,578
7,585
-10,996
-18,557
7.561
-8,979
-16,498
7,519
-8,904
-15,741
6,837
-10,897
-17,703
6,806
-12,044
-18,796
6.752
4 Goods and services, exports
5
Merchandise
794,610
575,871
218,739
848,833
612,069
236,764
931,370
678,150
253,220
77,681
56,683
20,998
78,867
57,264
21,603
78.104
56,308
21,796
80,067
58,388
21,679
78,661
57,524
21,137
79,352
58,414
20,938
77.283
56,296
20,987
7 Goods and services, imports
-896,467
-749,431
-147,036
-959,873
-803,239
-156,634
-1,045,054
-877,125
-167,929
-87,600
-73,550
-14,050
-87,860
-73,842
-14,018
-89,100
-74,865
-14,235
-89,046
-74,886
-14,160
-87,565
-73,265
-14,300
-90,249
-76,117
-14,132
-89.327
-75,092
-14,235
9
Services
1. Data show monthly values consistent with quarterly figures in the U.S. balance of
payments accounts.
3.12
SOURCE. FT900, U.S. Department of Commerce, Bureau of the Census and Bureau of
Economic Analysis.
US. RESERVE ASSETS
Millions of dollars, end of period
1998
1997
Asset
1 Total
1994
1995
1996
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.!1
74,335
85,832
75,090
66,120
66,640
67,148
68,036
67,112
69,954
70,003
70,628
11,051
10,039
11,050
11,037
11,049
10,312
11,051
9,810
11,050
9,985
11,050
9,997
11,050
10,132
11,050
10,120
11,050
10,027
11,046
9,998
11,046
10,217
12,030
41,215
14,649
49.096
15,435
38,294
13,677
31,582
13,959
31,646
14,042
32,059
14.243
32.611
14,571
31,371
18,071
30,809
18,039
30,920
18,135
31.230
2 Gold stock, including Exchange
4 Reserve position in International Monetary
Fund2
5 Foreign currencies4
1. Gold held "under earmark" at Federal Reserve Banks for foreign and international
accounts is not included in the gold stock of the United States; see table 3.13, line 3. Gold
stock is valued at $42.22 per fine troy ounce.
2. Special drawing rights (SDRs) are valued according to a technique adopted by the
International Monetary Fund (IMF) in July 1974. Values are based on a weighted average of
exchange rates for the currencies of member countries. From July 1974 through December
1980, sixteen currencies were used; since January 1981, five currencies have been used. U.S.
3.13
SDR holdings and reserve positions in the IMF also have been valued on this basis since July
1974.
3. Includes allocations of SDRs by the International Monetary Fund on Jan. 1 of the year
indicated, as follows: 1970—$867 million; 1971—$717 million; 1972—$710 million; 1979—
$1,139 million; 1980—$1,152 million; 1981—$1,093 million; plus net transactions in SDRs.
4. Valued at current market exchange rates.
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS1
Millions of dollars, end of period
1998
1997
Asset
1994
1995
1996
July
1 Deposits
Held in custody
2 U.S. Treasury securities
3 Earmarked gold3
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.p
250
386
167
175
169
188
190
167
457
215
243
441,866
12,033
522,170
11,702
638,049
11,197
653,157
10,793
660,461
10,793
655,406
10,793
638.100
10,793
635,092
10,793
620,885
10,763
625,219
10,709
621,956
10,705
1. Excludes deposits and U.S. Treasury securities held for international and regional
organizations.
2. Marketable U.S. Treasury bills, notes, and bonds and nonmarketable U.S. Treasury
securities, in each case measured at face (not market) value.
Aug.
3. Held in foreign and international accounts and valued at $42.22 per fine troy ounce; not
included in the gold stock of the United States.
A52
3.15
International Statistics • May 1998
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1997'
1995
Item
1 Total1
. . . .
1998
1996
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.p
630,918
758,624
781,414
793,548
803,621
798,596
791,618
776,806
779,307
By type
2 Liabilities reported by banks in the United States"
3 US. Treasury bills and certificates
U.S. Treasury bonds and notes
107,394
168,534
113,098
198,921
129,797
161,270
128,628
165,453
138,176
161,610
153,704
153,283
147.746
150,102
134,846
148.301
140,903
145,609
5
Nonmarketable*
6 U.S. securities other than U.S. Treasury securities5
293,690
6,491
54,809
379.497
5,958
61.140
422,934
5,804
61,609
431,169
5,841
62,457
434,260
5,879
63,696
421,412
5,919
64,278
423,243
5,955
64,572
422,876
5,994
54,789
421,687
6,033
65,075
222,406
19,473
66,721
311,016
6,296
5,004
257,915
21,295
80,623
385,484
7.379
5.925
272,159
21,112
93,117
380.702
8.882
5,440
272,566
20,959
94,262
390.584
8.934
6.241
276,594
21,233
94,754
394,551
10,218
6,269
280,489
19,418
90,190
391,541
9,812
7.144
272,630
19,275
94,135
390,203
9,542
5,831
262,928
18,749
97,310
381,172
10,118
6,527
261,955
18,339
96,697
385,949
10.213
6,152
By area
1 Europe1
10 Asia
11 Africa
12 Other countries
1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial paper,
negotiable time certificates of deposit, and borrowings under repurchase agreements.
3. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official
institutions of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes current value of
zero-coupon Treasury bond issues to foreign governments as follows: Mexico, beginning
March 1988, 20-year maturity issue and beginning March 1990, 30-year maturity issue;
3.16
LIABILITIES TO, AND CLAIMS ON, FOREIGNERS
Payable in Foreign Currencies
Venezuela, beginning December 1990. 30-year maturity issue; Argentina, beginning April
1993, 30-year maturity issue,
5. Debt securities of U.S. government corporations and federally sponsored agencies, and
U.S. corporate stocks and bonds.
SOURCE. Based on U.S. Department of the Treasury data and on data reported to the
department by banks (including Federal Reserve Banks) and securities dealers in the United
States, and on the 1989 benchmark survey of foreign portfolio investment in the United
States.
Reported by Banks in the United States'
Millions of dollars, end of period
1997
Item
2 Banks1 claims
3
Deposits
1994
89.258
60,711
19,661
41,050
10,878
1. Data on claims exclude foreign currencies held by U.S. monelajy authorities.
1995
109,713
74,016
22,696
51,320
6,145
1996
103,383
66,018
22,467
43,551
10,978
Mar.
June
Sept.
Dec.
109,238
72,589 '
24,542
48,047
10,196
109,433
84,623
26,461
58,162
10,265
118,477
89,568
28,961
60,607
10,210
116,738
82,729
24,769
57,960
8,476
2. Assets owned by customers of the reporting bank located in the United States that
represent claims on foreigners held by reporting banks for the accounts of the domestic
customers.
Bank-Reported Data
3.17
A53
Reported by Banks in the United States'
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Millions of dollars, end of period
1995
July
Aug.
Sept.
Oct.
BY HOLDER AND TYPE OF LIABILITY
1 Total, all foreigners
1,099,549
1,162,148
1,278,116
1,200,323
1,192,443
1,198,563
1,225,798
l,240.240r
1,278,116
1,259,215
753,461
24,448
192,558
140,165
396.290
758,998
27,034
186,910
143,510
401,544
878,019
32,076
193,483
167,644
484.816
807,103
27,655
189,352
177,279
412,817
788,607
27,107
190.465
162,026
409,009
797,480
28.332
187.475
171.113
410,560
824,419
33.551
193.424
193.960
403,484
833,966'
35,690'
191,772'
180,925'
425,579'
878,019
32,076
193,483
167,644
484.816
863,625
29,427
187,826
184,745
461.627
346,088
197,355
403,150
236,874
400.097
193,325
393,220
202,630
403,836
209,121
401,083
205.946
401,379
200,215
406,274
196,476
400,097
193,325
395,590
184.878
52,200
96,533
72,011
94,265
93,604
113,168
88,057
102,533
89,096
105,619
90,686
104,451
95.108
106.056
99.882
109.916
93,604
113,168
96,950
113.762
11,039
10,347
21
4.656
5,670
13,972
13.355
29
5,784
7,542
11,690
11.486
16
5,466
6,004
11,796
11,384
86
4,726
6,572
10,569
10,068
217
4,879
4,972
11,806
11,524
771
5,967
4,786
13,914
13,509
36
5.161
8,312
12.469
12.205
43
6,310
5,852
11,690
11.486
16
5,466
6.004
11,075
10.883
75
4,943
5,865
692
350
617
352
204
69
412
47
501
166
282
53
405
148
264
46
204
69
192
85
341
1
265
0
133
365
0
314
21
229
0
257
0
133
2
107
0
275,928
83,447
2,098
30,717
50,632
312,019
79,406
1,511
33,336
44,559
283,147
101,430
2,312
41,242
57,876
291,067
102,366
1,711
42,145
58,510
294,081
99,111
2,198
40,301
56.612
299,786
105,354
1,745
39,884
63,725
306,987
118,054
2,034
41,670
74,350
297,848'
109,938'
283.147
101,430
2,312
41,242
57.876
286.512
110.999
1.499
192,481
168,534
232.613
198.921
181,717
148,301
188,701
161,270
194,970
165,453
194,432
161,610
188,933
153,283
187,910
150,102
181.717
148.301
175,513
145.609
23,603
344
33,266
426
33,211
205
26,878
553
29,349
168
32,315
507
35,236
414
37,374
434
33.211
205
29.614
290
29 Banks1"
30
Banks' own liabilities
31
Unaffiliated foreign banks
32
Demand deposits
33
Time deposits2
34
Other3
35
Own foreign offices4
691,412
567,834
171,544
11.758
103,471
56,315
396,290
694.835
562.898
161.354
13.692
89,765
57,897
401.544
816,129
642,388
157,572
17,512
83,819
56,241
484.816
734,459
573,819
161,002
13,700
80,131
67,171
412,817
730,322
566,366
157,357
13,323
81,890
62,144
409.009
723,002
562,218
151,658
13,852
76,443
61,363
410,560
733.017
568.398
164.914
18,354
83,172
63,388
403.484
765,524'
595,594'
170.015'
21.316'
84.621'
64,078'
425,579'
816,129
642,388
157,572
17,512
83,819
56,241
484,816
787,298
617,501
155,874
15,974
80.141
59,759
461,627
36
37
38
123,578
15,872
131,937
23,106
173,741
31,915
160.640
28.642
163,956
30.629
160,784
30,012
164.619
33,085
169.930
32,995
173,741
31.915
169.797
27.607
13,035
94,671
17,027
91,804
35,333
106,493
35.522
96,476
33,960
99,367
32,886
97,886
32,065
99.469
33,826
103,109
35,333
106,493
35,266
106,924
121,170
91,833
10,571
53,714
27,548
141,322
103,339
11,802
58,025
33,512
167,150
122,715
12,236
62,956
47.523
163,001
119.534
12.158
62,350
45.026
157.471
113,062
11,369
63.395
38,298
163,969
118,384
11,964
65,181
41,239
171,880
124,458
13,127
63,421
47.910
164,399
116,229
12,440'
61.175'
42.614
167.150
122.715
47^523
174.330
124,242
11,879
64,411
47.952
29.337
12,599
37.983
14.495
44,435
13,040
43,467
12,671
44,409
12,873
45,585
14.271
47,422
13,699
48.170
13.333
44.435
13.040
50,088
11,577
15,221
1,517
21.453
2,035
24,927
6,468
25,292
5,504
25,473
6,063
25.256
6,058
27,550
6.173
28,465
6,372
24,927
6,468
31,963
6,548
9.103
14,573
16,046
16,453
16,040
15.872
15.485
16.553
16,046
17,038
2 Banks' own liabilities
3
Demand deposits
4
Time deposits2
5
Other3
6
Own foreign offices4
7 Banks' custodial liabilities
8
U.S. Treasury bills and certificates6
9
Other negotiable and readily transferable
instruments7
10 Other
1
11 Nonmonetary international and regional organizations
12 Banks' own liabilities
13
Demand deposits
14
Time deposits
15
Other3
16
17
18
19
Banks' custodial liabilities"
U.S. Treasury bills and certificates6
Other negotiable and readily transferable
instruments7
Other
20 Official institutions9
21
Banks' own liabilities
22
Demand deposits
23
Time deposits"
24
Other3
25
26
27
28
39
Banks' custodial liabilities^
U.S. Treasury bills and certificates6
Other negotiable and readily transferable
instruments7
Other
Banks' custodial liabilities
U.S. Treasury bills and certificates6
Other negotiable and readily transferable
instruments
Other
40 Other foreigners
41
Banks' own liabilities
42
Demand deposits
43
Time deposits"
44
Other3
45
46
47
48
Banks' custodial liabilities5
U.S. Treasury bills and certificates6
Other negotiable and readily transferable
instruments7
Other
1,891
39,666
68,381'
12.236
62.956
38.331
71,169
MEMO
49 Negotiable time certificates of deposit in custody for
foreigners
1. Reporting banks include all types of depository institutions as well as some brokers and
dealers. Excludes bonds and notes of maturities longer than one year.
2. Excludes negotiable time certificates of deposit, which are included in "Other negotiable and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. For U.S. banks, includes amounts owed to own foreign branches and foreign subsidiaries consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory
agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists
principally of amounts owed to the head office or parent foreign bank, and to foreign
branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank.
5. Financial claims on residents of the United States, other than long-term securities, held
by or through reporting banks for foreign customers.
6. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official
institutions of foreign countries.
7. Principally bankers acceptances, commercial paper, and negotiable time certificates of
deposit.
8. Principally the International Bank for Reconstruction and Development, the InterAmerican Development Bank, and the Asian Development Bank. Excludes "holdings of
dollars" of the International Monetary Fund.
9. Foreign central banks, foreign central governments, and the Bank for International
Settlements.
10. Excludes central banks, which are included in "Official institutions."
A54 International Statistics • May 1998
3.17
LIABILITIES TO FOREIGNERS Reported by Banks in the United States1—Continued
1997'
July
Aug.
Sept.
Nov.
AREA
50 Total, all foreigners
1,099.549
1,162,148
1,278,116'
1,200,323
1,192,443
1,198,563
1,225,798
1,240,240'
1,278,116'
1,259,215
51 Foreign countries
1,088,510
1,148,176
1,266,426'
1,188,527
1,181,874
1,186,757
1,211,884
1,227,771'
1,266,426'
1,248,140
362,819
3,537
24,792
2,921
2,831
39,218
24.035
2,014
10,868
13,745
1,394
2,761
7,948
10,011
3,246
43,625
4,124
139,183
177
26.389
376,590
5,128
24,084
2,565
1,958
35,078
24,660
1,835
10,946
11,110
1,288
3,562
7,623
17,707
1,623
44,538
6,738
153,420
206
22,521
420,290"
2,717'
41.007'
1,514
2,246
46.607
23,737
1.515
11,378
7,385
317
2,262
7,968
18,989
1,628
39,258
4,054
181.824
239
25,645'
411,680
3,257
43,291
2,289
1.814
43 464
407,700
3,404
46.063
1.736
1.751
41.213
22.626
1,592
9,179
7,823
604
1,931
13,216
15,203
2,317
402,063
2,691
43,436
2,867
2,163
43,065
25,201
2,086
9,852
8,388
1,321
1,958
12,784
17,796
2,024
418,988
2,679
46,067
2,359
1,997
45,057
22,117
2.075
11.449
8,119
1,022
1,888
11,722
21,934
1,348
37,075
4,661
165,199
233
31.987
425,584'
2,319
46,258
2,157
1,969
45,653'
23,040
1.229
10,713
7.010
1.793
1.987
6.938
20,921
1,614
39,665
4,218
177.781
234
30,085
420,290'
2,717'
41,007'
1,514
2,246
46,607
23.737
1,515
11,378
7,385
317
2,262
7,968
18,989
1.628
39,258
4,054
181,824
239
25,645'
401,360
2,787
39.018
1.625
2,177
44,773
21,987
1,676
9.854
6,287
955
1,515
5,573
19,413
1,415
37,414
3,659
176.290
292
24,650
52 Europe
53
Austria
54 Belgium and Luxembourg
55
Denmark
56
Finland
57
France
58 Germany
59 Greece
60 Italy
61
Netherlands
62
Norway
63 Portugal
64
Russia
65
Spain
66 Sweden
67
Switzerland
68 Turkey
69
United Kingdom
70 Yugoslavia11
71
Other Europe and other former U.S.S.R.I:
72 Canada
73 Latin America and Caribbean
74
Argentina
75
Bahamas
76
Bermuda
77
Brazil
78 British West Indies
79
Chile
80
Colombia
81
Cuba
82
Ecuador
83
Guatemala
84 Jamaica
85
Mexico
86
Netherlands Antilles
87
Panama
88
Peru
89 Uruguay
90
Venezuela
91
Other
92 Asia
China
93
Mainland
94
Taiwan
95
Hong Kong
96
India
97
Indonesia
98
Israel
99
Japan
100
Korea (South)
101
Philippines
Thailand
.^
102
Middle Eastern oil-exporting countries''
103
Other
104
30,468
38,920
28,341
440.213
12,235
94,991
4,897
23,797
239,083
2.826
3,659
8
1,314
1,276
481
24,560
4,673
4,264
974
1,836
11,808
7,531
467,529
13.877
88,895
5,527
27,701
251,465
2.915
3,256
21
1,767
1,282
628
31,240
6,099
4,099
834
1,890
17,363
8,670
531,078'
20,193
112,216'
6,911'
31,032'
271,162'
4.072
3.630
66
2.078
1,494
450
33,971
5,078
4,239
893
2,382
21,601'
9,610'
24,978
1,726
9,490
8.440
B46
2,075
13,604
15,158
1.925
44.283
6.594
161.672
267
24,507
41,076
5,933
167,914
244
23,875
36,862
4,736
158.849
243
25,741
30,445
27,629
29,592
30.282
30,921
28.341
29,034
500,824
17,100
496,658
18,033
86,271
7,786
31,567
268,485
3,353
2,587
60
1,512
1,389
534
30,804
8,286
3,805
502,648
16,643
501,854
17.557
89.630
6,209
31.675
270,004
3.579
3.395
499,265
18.214
92,389
6,012
32,609
531,078'
525,811
19,213
112,907
6,266
31,927
265,812
4,513
3.535
92,136
5,919
28.340
265.291
3,440
2,652
54
1.640
1.455
532
34 779
10.986
4 424
958
2 »2
19.124
9,602
1.006
2,070
20,159
8,951
86,914
6,084
33,575
273,570
3.327
2,657
55
1,508
1,449
523
32,640
7,566
3,835
904
1.997
20,580
8,821
263,770
3.283
3,266
71
57
1,671
1,399
481
32,748
6,059
4,107
917
2,184
20,639
9,529
1,704
1.361
445
32.668
4,987
4,291
907
2,247
22,110'
8,945'
20,193
112,216'
6,9(1'
31.032'
271,162'
4,072
3,630
66
2,078
1.494
450
33.971
5,078
4,239
893
2,382
21,601'
63
1.876
1,491
449
33,224
5,777
3,911
875
2,201
22,331
9,610'
9,440
240.595
249,083
269,166'
227,759
231,017
234,560
242,074
255,000'
269,166'
274,165
33,750
11,714
20,197
3,373
2,708
4,041
109,193
5,749
3,092
12,279
15,582
18,917
30,438
15,995
18,789
3,930
2,298
6,051
117,316
5.949
3,378
10,912
16,285
17.742
18,228'
11,760'
17,722'
4,567
3,554
6,283
143,401'
12,955
3,250
6,501
14.959
25.986'
9 480
13,464
18,737
4,555
2,817
5.180
118,410
8,928
2 908
5.262
14,306
23.712
10,450
11,803
17,647
4,474
3,737
5,202
119.581
9,646
2,541
4,956
15.325
25,655
12,664
13,460
18,533
4,451
2,810
4,534
118,536
9,327
2,409
6,545
14,279
27,012
16,244
15,207
19,755
5,131
4,568
4,200
116,852
8,597
2,505
6,988
14,436
27,591
17,433'
13,586
18,886
4,913
3.092
3.745
133.690'
9.982
2.558
5.824'
14.017
27.274
18.228'
11,760'
17,722'
4,567
3.554
6.283
143.401'
12.955
3.250
6,501
14.959
25,986'
20,133
12,932
17,952
5,331
2,911
7,192
138.663
11,699
2.505
5,858
16,059
32,930
105 Africa
106 Egypt
107
Morocco
108
South Africa
109 Zaire
110 Oil-exporting countries14 .
111
Other
7,641
2,136
104
739
10
1,797
2.855
8,116
2,012
112
458
10
2.626
2,898
10,343
1,663
138
2,158
10
3,060
3,314
9.734
10,380
2,050
99
2,047
14
3,280
2,890
10,310
105
2,028
3
3,194
3,238
9.520
1,836
69
1,615
5
2,948
3.047
10,343
1.663
138
8
2,981
3,015
9,731
1,973
94
1,694
7
3,211
2,752
10
3,060
3,314
10.291
1,949
131
1,685
7
3,470
3,049
112 Other
113 Australia
114 Other
6,774
5,647
1,127
7,938
6,479
1,459
7,208
6,304
904
8,085
6,782
1,303
9,139
7,917
1,222
7,514
6,391
1,123
8,376
7,284
1,092
7,481
6,283
1,198
7,208
6,304
904
7,479
6,383
1.096
11,039
9.300
893
846
13,972
12,099
1,339
534
11,690'
10,517'
424'
749
11,796
10,341
794
661
10,569
9,434
579
556
11,806
10,634
13,914
11,943
1.277
12,469
10,926
1,053
11,075
694
490
11,690'
10.517'
424'
749
115 Nonmonetary international and regional organizations.
116
International "
117 Latin American regional
118 Other regional17
11. Since December 1992, has excluded Bosnia, Croatia, and Slovenia
12. Includes the Bank for International Seiilcmenls. Since December 1992, has
included all parts of the former U.S.S.R. (except Russia), and Bosnia. Croatia, and Slovenia.
13. Comprises Bahrain. Iran. Iraq. Kuwail, Oman. Qatar. Saudi Arabia, and United Arab
Emirates (Trucial States).
14. Comprises Algeria, Gabon, Libya, and Nigeria.
1.921
112
1.697
1,742
2,158
9,851
975
249
15 Principally the International Bank for Reconstruction and Development. Excludes
"holdings of dollars" of the International Monetary Fund.
16. Principally the Inler-American Development Bank.
17. Asian, African, Middle Eastern, and European regional organizations, except the Bank
for International Settlements, which is included in "Other Europe."
Bank-Reported Data
3.18
A55
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1
Payable in U.S. Dollars
Millions of dollars, end of period
1997'
Area or country
July
Aug.
Sept.
Nov.
1 Total, all foreigners
532,444
599,925
708,297
646,504
650,453
656,676
681,634
699,049r
708,297
702,931
2 Foreign countries
530,513
597,321
705,834
645,351
648,036
654,633
679,886
696,563r
705,834
700,014
132,150
165,769
1,662
6,727
492
971
15,246
8,472
568
6,457
7,117
808
418
1,669
3,211
1,739
19,798
1,109
85,234
115
3,956
200,023
1,354
6,755
980
1,233
16,239
12,676
402
6,259
6,141
555
777
1,248
2,941
1,854
28,846
1,558
103,143
52
7,010
186,365
1,690
8,094
806
1,247
18,689
8,351
461
7,443
12,050
745
439
2,098
6,496
1,740
24,883
1,362
84,162
75
5,534
189,759
1,739
8,124
811
1,773
16,232
8,685
481
8,015
11,083
849
732
2,192
6,175
1,639
24,338
1,305
90,226
76
5,284
199,261
1,371
7,847
1,082
1,889
17,531
11,724
499
7,670
11,548
1,713
563
1,927
5,431
1,659
25,393
1,410
93,825
75
6,104
213,886
1,913
8,347
896
1,808
17,043
11,617
463
7,146
11,504
1.419
615
2,054
6,624
1,838
29,980
1,424
102,405
75
6,715
215.061'
2.034
7,461
844
1.259
19.817'
13.245'
401
6,870
11.496
2,080
695
2,207
6,338
1,804
29.399'
1,572
100,870
74
6,595
200,023
1,354
6,755
980
1,233
16,239
12.676
402
6.259
6,141
555
777
1,248
2,941
1,854
28,846
1,558
103,143
52
7,010
204,732
1,917
5,714
1,531
1,492
21,482
10.849
504
6,661
5.394
979
655
1.297
6.925
1,738
28,514
1,648
99.279
53
8,100
3 Europe
4
Austria
5
Belgium and Luxembourg
6
Denmark
7
Finland
8
France
9
Germany
10 Greece
11 Italy
12 Netherlands
13 Norway
14 Portugal
15 Russia
16 Spain
17 Sweden
18 Switzerland
19 Turkey
20
United Kingdom
21
Yugoslavia^
22
Other Europe and other former U.S.S.R.'
23 Canada
565
7,624
403
1,055
15,033
9,263
469
5,370
5,346
665
888
660
2,166
2,080
7,474
803
67,784
147
4,355
20,874
26,436
27,170
26,289
24,442
23,513
22,824
24,765
27.170
25.146
24 Latin America and Caribbean
25
Argentina
26
Bahamas
27
Bermuda
28
Brazil
29
British West Indies
30
Chile
31
Colombia
32
Cuba
33
Ecuador
34
Guatemala
35 Jamaica
36
Mexico
37
Netherlands Antilles
38
Panama
39
Peru
40
Uruguay
41
Venezuela
42
Other
256,944
6,439
58,818
5,741
13,297
124,037
4,864
4,550
0
825
457
323
18,024
9,229
3,008
1,829
466
1.661
274,153
7,400
71.871
4.129
17,259
105,510
5,136
3,376
345
18,425
25,209
2,786
2,720
589
1,702
3,174
343,752
8,917
89.379
8,782
20.900
146.257
7.913
6.937
0
1.311
886
424
19,517
17,838
4,364
3,490
629
2,123
4,085
300,339
7,088
69,819
8.252
18,879
134,438
5.686
6,419
0
1.165
679
359
19,585
15,759
3,272
2,697
778
1,734
3,730
298,786
7,277
70,031
9,829
19,249
128,373
5.919
6.608
0
1,199
689
375
18,680
18,399
3,482
2,850
702
1,750
3,374
302,528
7,243
66,074
9,342
19,422
133.778
6,235
6.543
0
1,218
764
374
18,770
20,325
3,566
3,060
728
1,716
3,370
303,877
8,138
73,837
8,097
20,127
133,310
7,189
6,862
0
1,307
760
364
18,584
12,274
3,957
3,184
709
1,636
3,542
317,478
8,757
72.739
6,552
20,382
141,801
7,783
6,968
3
1,292
787
405
18,904
17,064
4,089
3,456
651
1,915
3,930
343.752
8.917
89.379
8,782
20.900
146,257
7,913
6,937
0
1,311
886
424
19,517
17,838
4,364
3,490
629
2,123
4,085
345.572
9,072
90,833
9,385
21,625
146,658
7.910
6,726
0
1,390
863
422
20,509
16,030
4,062
3.411
588
2,250
3,838
43 Asia
China
44
Mainland
45
Taiwan
46
Hong Kong
47
India
48
Indonesia
49
Israel
50 Japan
51
Korea (South)
52 Philippines
53 Thailand
54
Middle Eastern oil-exporting countries4
55
Other
115,336
122,478
125,020
122,517
124,927
120,807
129,589
129,760'
125,020
114,393
1,023
1,713
12,821
1,846
1,696
739
61,468
13,975
1,318
2,612
9,639
6,486
1,401
1,894
12,802
1,946
1,762
633
59,967
18,901
1,697
2,679
10,424
8,372
1,579
921
13,995
2,200
2,611
768
59,546
18,118
1,689
2,259
10,790
10,544
2,385
1,523
12,247
2,184
2,524
855
55,592
21,274
1,723
2,825
9,751
9,634
2,574
1,521
13,188
2,110
2,579
749
54,427
21,690
1,834
2,641
9,503
12,111
2,798
1,250
13,573
2,086
2,713
907
52,480
19,978
1,670
2,479
7,988
12,885
2,345
1,271
15,343
2,360
2,698
1,539
59,437
19,922
1,455
2,317
8,490
12,412
2,102
1,000
15,156
2,501
2,774'
1,201
60,195
19,253
1,533
2,180
8,909
12,956'
1,579
921
13,995
2,200
2.611
768
59,546
18,118
1,689
2,259
10,790
10,544
2,541
847
14,552
2,306
2,346
925
52,903
14,427
1,794
2,164
9,133
10,455
56 Africa
57 Egypt
58
Morocco
59
South Africa
60
Zaire
61
Oil-exporting countries5
62
Other
2,742
210
514
465
1
552
1,000
2,776
247
524
584
0
420
1,001
3,530
247
511
805
0
1,212
755
3,125
267
463
493
0
1,134
768
3,281
288
554
489
0
1,178
772
3.464
251
547
655
0
1,123
3,342
245
599
557
0
1,111
830
3,332
282
412
743
0
1,091
804
3,530
247
511
805
0
1,212
755
3,587
279
498
702
0
1,323
785
63 Other
64
Australia
65
Other
2,467
1,622
845
5,709
4,577
1,132
6,339
5,299
1,040
6,716
4,938
1,778
6,841
5,266
1,575
5.060
4.314
746
6.368
5.296
1.072
6,167
4.962
1.205
6,339
5,299
1,040
6,584
5,500
1,084
66 Nonmonetary international and regional organizations6 ..
1,931
2,604
2,463
1,153
2,417
2,043
1.748
2,486
2,463
2,917
6,247
0
1,031
620
1. Reporting banks include all types of depository institutions as well as some brokers and
dealers.
2. Since December 1992, has excluded Bosnia, Croatia, and Slovenia.
3. Includes the Bank for International Settlements. Since December 1992, has included all
parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia.
4. Comprises Bahrain, Iran, Iraq. Kuwait. Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in "Other Europe."
A56
3.19
International Statistics lU May 1998
BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS
Payable in U.S. Dollars
Reported by Banks in the United States1
Millions of dollars, end of period
1997
Type of claim
1995
1996
1998
1997
July
Aug.
646,504
26,923
370,506
117,694
36,006
81,688
131.381
650,453
28,263
370,599
115,343
35.436
79,907
136,248
Sept.
Oct.'
Nov.'
681,634
29.795
400,200
115,295
30,358
84,937
136.344
699,049
27,739
409.314
122,350
32,373
89,977
139,646
Dec.
1 Total
655,211r
743,919r
858,031
2 Banks" claims
3
Foreign public borrowers
4
Own foreign offices
5
Unaffiliated foreign banks
532.444
22,518
307,427
101,595
37,771
63,824
100,904
599,925
22,216
341,574
113,682
33,826
79,856
122,453
708,297
20,706
431,677
109,496
29,789
79,707
146,418
122,767
58,519
143,994
149,734
73,110
169,993
101,683
149.734
73,110
53,967
50,291
53,967
22,657
18.019
22,657
10.854
9,587
7
8
Other
All other foreigners
10
11
Deposits
Negoriable and readily transferable
instruments4
Outstanding collections and other
12
44,161
20,087
77,657
51.207
15,130
858,031
826,669'
656,676
30,287
374,443
104,749
29,509
75,240
147.197
Jan.p
708,297
20,706
431,677
109,496
29,789
79,707
146.418
702,931
30,213
415,528
111,296
29,287
82,009
145.894
MEMO
13 Customer liability on acceptances
14 Dollar deposits in banks abroad, reported by
nonbanking business enterprises in the
United Statess
8,410
10,388
9,587
30,717
39.661
34,166
38,213
38,171'
39.157
34.166
37,527
36,052
principally of amounts due from the head office or parent foreign bank, and from foreign
branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank.
3. Assets held by reporting banks in the accounts of their domestic customers.
4. Principally negotiable time certificates of deposit, bankers acceptances, and commercial
paper.
5. Includes demand and time deposits and negotiable and nonnegotiable certificates of
deposit denominated in U.S. dollars issued by banks abroad.
1. For banks' claims, data are monthly; for claims of banks" domestic customers, data are
for quarter ending with month indicated.
Reporting banks include all types of depository institution as well as some brokers and
dealers.
2. For U.S. banks, includes amounts due from own foreign branches and foreign subsidiaries consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory
agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists
3.20
45,342
BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS
Payable in U.S. Dollars
Reported by Banks in the United States1
Millions of dollars, end of period
1997
Maturity, by borrower and area2
1 Tolal
2
3
4
5
6
7
fly borrower
Maturity of one year or less
Foreign public borrowers
All other foreigners
Maturity of more than one year
Foreign public borrowers
All other foreigners
1994
1995
1996
Mar.
June
Sept.
Dec.p
202,282
224,932
258,106
276,025
271,894
282,234
276,578
170,411
15.435
154.976
31,871
7,838
24,033
178,857
14,995
163.862
46.075
7,522
38,553
211,859
15,411
196.448
46.247
6 790
39,457
223,721
19,876
203,845
52,304
8,835
43,469
211,140
17,979
193.161
60,754
11,220
49,534
219,343
21,535
197,808
62,891
8 752
54.139
205,879
12.135
193,744
70,699
8,528
62,171
56,381
6,690
59,583
40,567
1,379
5.811
55,622
6,751
72,504
40.296
1.295
2,389
55 690
8,339
103 254
38,078
1.316
5.182
74,888
10,423
96,892
36.478
1,451
3.589
69,233
10,320
87,059
38,434
1,899
4,195
69 213
8,460
99,902
36,030
2,157
3,581
58,407
9,917
97,198
33,958
2,211
4,188
4,358
3,505
15,717
5,323
1,583
1,385
4.995
2,751
27,681
7,941
1,421
1,286
6.965
2,645
24,943
9.392
1.361
9,512
2,934
26,797
10,773
1,204
1,084
11,835
3,164
31,001
12,510
1,264
11,198
3,832
34,873
10,394
1,236
1,358
13,240
2,512
42,069
10,159
1,236
1,483
By area
Maturity of one year or less
8
9
10
11
Europe
Canada...
Latin America and Caribbean
Asia
12
13
Africa
All other'
Maturity of more than one year
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other1
14
15
16
17
18
19
I. Reporting banks include all types of depository i istitutions as well as some brokers and
dealers.
941
980
2. Maturity is time remaining until maturity.
3. Includes nonmonetary international and regional organizations.
Bank-Reported Data A57
3.21
CLAIMS ON FOREIGN COUNTRIES
Billions of dollars, end of period
Held by U.S. and Foreign Offices of U.S. Banks1
1995
Area or country
Dec.
1 Total....
2 G-10 countries and Switzerland
3
Belgium and Luxembourg
4
France
5
Germany
6
Italy
7
Netherlands
8
Sweden
9
Switzerland
10 United Kingdom
11 Canada
12 Japan
409.5
499.5
551.9
Sept.
574.7
612.8r
Sept.
586.2r
645.3r
647.6r
678.8r
712.3 r
r
161.9
7.4
12.0
12.6
7.7
4.7
2.7
5.9
84.4
6.9
17.6
191.2
7.2
19.1
24.7
11.8
3.6
2.7
5.1
85.8
10.0
21.1
206.0
13.6
19.4
27.3
11.5
3.7
2.7
6.7
82.4
10.3
28.5
203.4
11.0
17.9
31.5
13.2
3.1
3.3
5.2
84.7
10.8
22.7
226.9'
11.4
18.0
31.4'
14.9
4.7
27
6.3
101.6
12.2
23.6
220Xf
11.3
17.4
33.9'
15.2
5.9
3.0
6.3
90.5
14.8
21.7
228.3
11.7
16.6
29.8'
16.0
4.0
2.6
5.3
104.7
14.0
23.7
231.4'
14.1
19.7
32.1'
14.4
4.5
3.4
6.0
99.2
16.3
21.7
250.0'
9.4
17.9
34.1'
20.2
6.4
3.6
5.4
110.6
15.7
268
247.7'
11.4
20.2
34 7'
19.3
7.2
4.1
4.8
108.3
15.1
22.6
13 Other industrialized countries
14 Austria
15 Denmark
16 Finland
17 Greece
18 Norway
19 Portugal
20 Spain
21
Turkey
22
Other Western Europe
23
South Africa
24
Australia
26.5
.7
1.0
.4
3.2
1.7
.8
9.9
2.1
3.2
1.1
2.3
45.7
1.1
1.3
.9
4.5
2.0
1.2
13.6
1.6
3.2
1.0
15.4
50.2
61.3
1.3
3.4
.7
5.6
2.1
1.6
17.5
2.0
3.8
1.7
21.7
S5.5
1.2
3.3
.6
5.6
2.3
1.6
62.1
1.0
1.7
.6
6.1
3.0
1.4
13.6
16.1
65.7
1.1
1.5
.8
6.7
8.0
.9
13.2
2.7
4.7
2.0
24.0
66.4
1.9
1.7
.7
6.3
5.3
1.0
14.4
2.8
6.3
1.9
24.4
71 7
1.5
2.8
1.4
6.1
4.7
1.1
15.4
3.4
5.5
1.9
27.8
73.8
1.7
3.7
1.9
6.2
4.6
1.4
13.9
4.4
6.1
1.9
28.1
25 OPEC2
26
Ecuador
27
Venezuela
28
Indonesia
29
Middle East countries
30
African countries
17.6
.5
5.1
3.3
7.6
1.2
24.1
.5
3.7
3.8
15.3
22.1
.7
2.7
4.8
19.7
21.8
1.1
1.9
4.9
13.2
.7
22.3
.6
21.2
.8
2.9
4.7
12.3
.6
5.6
12.5
1.2
22.9
1.2
2.2
6.5
11.8
I.I
112.6
118.6
126.5
128.1
140.6
136.9
12.9
13.7
6.8
2.9
17.3
.8
2.8
12.7
18.3
6.4
2.9
16.1
.9
3.1
16.4
27.3
9.4
4.4
.5
19.1
4.4
4.1
4.9
4.5
3.3
9.7
4.7
.5
19.3
5.2
3.9
5.2
4.3
31 Non-OPEC developing countries . .
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other
7.7
12.0
4.7
2.1
17.9
.4
3.1
39
40
41
42
43
44
45
46
47
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia.
Philippines
Thailand
Other Asia
2.0
7.3
3.2
.5
6.7
4.4
3.1
3.1
3.1
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa3
52 Eastern Europe,.
53 Russia4
54
Other
55 Oifshore banking centers. ..
56
Bahamas
Bermuda.
58
Cayman Islands and other British West Indies . .
59
Netherlands Antilles
60
Panama5
61
Lebanon
62
Hong Kong, China
63 Singapore
64
Other 8 ...
65 Miscellaneous and unallocated7
.9
96.0
11.2
8.4
6.1
2.6
18.4
.5
2.7
13.3
1.1
9.2
4.2
.4
16.2
3.1
3.3
2.1
4.7
2.3
3.4
2.0
2.8
4.8
1.7
19.6
22.8
20.1
.9
2.3
4.9
11.5
.5
19.2
.9
2.3
5.4
10.2
.4
14.1
21.7
6.7
2.8
15.4
1.2
3.0
2.9
9.8
4.2
.6
21.7
5.3
4.7
5.4
4.8
.4
.7
.0
.9
3.2
1.6
1.6
73.5
10.9
8.9
18.4
2.8
2.4
.1
18.8
11.2
.1
43.6
1.9
72.9
10.2
8.4
21.4
1.6
1.3
.1
20.0
10.1
.1
66.9
1. The banking offices covered by tliese data include U.S. offices and foreign branches of
US banks, including U.S. banks that are subsidiaries of foreign banks. Offices not covered
include U.S. agencies and branches of foreign banks. Beginning March 1994, the data include
large foreign subsidiaries of U.S. banks. The data also include other lypes of U.S. depository
institutions as well as some types of brokers and dealers. To eliminate duplication, the data
are adjusted to exclude the claims on foreign branches held by a U.S. office or another foreign
branch of the same banking institution.
These data are on a gross claims basis and do not necessarily reflect the ultimate country
risk or exposure of U.S. banks. More complete data on the country risk exposure of U.S. banks
are available in the quarterly Country Exposure Lending Survey published by the Federal
Financial Institutions Examination Council.
.9
2.6
.8
5.7
3.2
1.3
11.6
1.9
4.7
1.2
16.4
II
2.4
5.2
10.7
.4
.9
2.1
15.0
17.8
6.6
3.1
16.3
1.3
3.0
14.3
20.7
7.0
4.1
16.2
1.6
3.3
14.3
22.0
2.6
10.4
3.8
.5
21.9
5.5
5.4
4.8
4.1
2.5
10.3
4.3
.5
21.5
6.0
5.8
5.7
4.1
2.7
105
.6
.7
.0
1.0
.7
.7
.1
.9
.9
.6
.0
.9
1.1
.7
.0
.9
.9
.7
.0
.9
6.8
3.7
17.2
1.6
3.4
4.9
.6
14.6
6.5
6.0
6.8
4.3
7.6
3.3
16.6
1.4
3.4
3.6
10.6
5.3
.8
16.3
6.4
7.0
7.3
4.7
17.1
26.1
7.9
3.4
16.4
1.8
3.6
4.3
9.7
4.9
1.0
16.2
5.6
5.7
6.2
4.5
4.2
1.0
3.2
6.3
1.4
4.9
5.1
1.0
4.1
5.3
1.8
3.5
6.9
3.7
3.2
8.9
3.5
5.4
7.1
4.2
2.9
9.8
5.1
4.7
99.2
11.0
6.3
32.4
10.3
1.4
.1
25.0
13.1
.1
57.6
101.3
13.9
5.3
28.8
106.1
17.3
105.2
14.2
4.0
32.0
11.7
1.7
.1
26.0
15.5
.1
50.0
134.7
20.3
4.5
37.2
26.1
2.0
.1
131.3
20.9
6.7
32.8
19.9
2.0
.1
30.8
17.9
.1
59.6
129.6
16 1
7.9
35.1
15.8
2.6
.1
35.2
140.3
19.8
9.8
45.7
21.7
2.1
.1
27.2
14.1
I
80.8
11.1
1.6
.1
25.3
15.4
.1
62.6
4.1
26.1
13.2
1.7
.1
27.6
15.9
27.9
16.7
.1
59.6
16.7
.3
57.6
2. Organization of Petroleum Exporting Countries, shown individually; other members of
OPEC (Algeria. Gabon, Iran, Iraq. Kuwait, Libya, Nigeria, Qatar. Saudi Arabia, and United
Arab Emirates); and Bahrain and Oman (not formally members of OPEC).
3. Excludes Liberia. Beginning March 1994 includes Namibia.
4. As of December 1992, excludes other republics of the former Soviet Union.
5. Includes Canal Zone.
6. Foreign branch claims only.
7. Includes New Zealand, Liberia, and international and regional organizations.
A58
3.22
International Statistics • May 1998
LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in
the United States
Millions of dollars, end of period
Type of liability, and area or country
1993
Sept.
Dec.
Mar.
Sept.
50,597
54,309
46,448
48,943
51,604
54,798
58,750'
55,184'
55,476
2 Payable in dollars
3 Payable in foreign currencies
38,728
11,869
38,298
16,011
33,903
12,545
35,338
13,605
36.374
15,230
38,956
15.842
39,944'
18,806'
38,494'
16,690'
39,583
15.893
By type
4 Financial liabilities
5
Payable in dollars
6
Payable in foreign currencies
29,226
18,545
10,681
32,954
18,818
14,136
24,241
12,903
11,338
24,797
12,165
12,632
25,445
11,272
14,173
26,065
11,327
14,738
29,633'
11,847'
17,786'
26,864'
11,203'
15,661'
25,970
11,248
14,722
7 Commercial liabilities
8
Trade payables
9
Advance receipts and other liabilities
21,371
8,802
12,569
21,355
10,005
11,350
22,207
11,013
11.194
24,146
11,081
13,065
26,159
11,791
14,368
28,733
12,720
16,013
29,117
11,515
17,602
28,320
11,122
17,198
29,506
10,961
18,545
10
11
Payable in dollars
Payable in foreign currencies
20,183
1,188
19,480
1,875
21.000
1,207
23,173
973
25,102
1,057
27,629
1,104
28,097
1,020
27,291
1,029
28,335
1,171
12
13
14
15
16
17
18
By area or country
Financial liabilities
Europe
Belgium and Luxembourg .
France
Germany
Netherlands
Switzerland
United Kingdom
18,810
175
2,539
975
534
634
13,332
21.703
495
1,727
1,961
552
688
15,543
15,622
369
999
1,974
466
895
10.138
16,387
498
1,011
1,850
444
1,156
10,743
16,086
547
1,220
2,276
519
830
9,837
16,195
632
1,091
1,834
556
699
10,177
20,081'
769
1,205
1,589
507
694
13,863'
18,530*
238
1,280
1.765
466
591
12,968'
18,019
89
1.334
1.730
507
645
12,165
19
Canada
859
629
632
951
973
1,401
602
456
399
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
3,359
1,148
0
18
1,533
17
5
2,034
101
80
207
998
0
5
1,783
59
147
57
866
12
969
31
28
8
826
1,169
50
25
52
764
13
1
1,668
236
50
78
1,030
17
1
1,876
293
27
75
965
16
1
1,279
124
55
97
769
15
1
1,061
10
64
52
663
76
1
27
28
29
Asia
5,956
4,887
23
8,403
7,314
35
5.988
5,436
27
6,351
6,051
26
6,969
6.602
25
6,423
5,869
25
6,370
5,794
72
6,015'
5,435
39
6,006
5,492
23
30
31
Africa
Oil-exporting countries2
133
123
135
123
150
122
72
61
153
121
38
0
29
0
29
0
33
0
32
All other1
109
675
555
452
9,551
643
680
1,047
553
481
4,165
8,711
738
709
852
290
430
3,827
9,362
705
783
950
453
401
3,834
33
34
35
36
37
38
39
Middle Eastern oil-exporting countries1
Commercial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom ,
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
48
49
50
Asia
Japan
Middle Eastern oil-exporting countries1
51
52
Africa
Oil-exporting countries
41
67
6,827
239
655
684
688
375
2,039
6,773
241
728
604
722
327
2,444
7,700
331
481
767
500
413
3,568
7,916
326
678
839
617
516
3,266
8,680
427
657
949
668
405
3,663
9,767
479
680
1,002
766
624
4,303
879
1,037
1.040
998
1,144
1,090
1,068
1,136
1,150
1,658
21
350
214
27
481
123
1,857
19
345
161
23
574
276
1,740
I
205
98
56
416
221
2,301
35
509
119
10
475
283
2,386
33
355
198
15
446
341
2,574
63
297
196
14
665
328
2,563
43
479
201
14
633
318
2,501
33
397
225
26
594
304
2,225
38
180
233
23
562
322
10,980
4,314
1,534
10,741
4,555
1,576
10,421
3,315
1,912
11,389
3,943
1,784
12,227
4,149
1,951
13,422
4,614
2,168
13,968
4,502
2,495
13,926
4,460
2,420
14,682
4,587
2,984
453
167
428
256
619
254
924
462
1,020
490
1,040
532
1,037
479
941
423
929
504
1.105
1,158
574
1. Comprises Bahrain, Iran, Iraq. Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
2. Comprises Algeria, Gabon, Libya, and Nigeria
3. Includes nonmonetary international and regional organizations.
Nonbank-Reported Data A59
3.23
CLAIMS ON UNAFFILIATED FOREIGNERS
the United States
Millions of dollars, end of period
Type of claim, and area or country
Reported by Nonbanking Business Enterprises in
1993
June
Sept.
June
Sept.
1 Total
49,159
57,888
52,509
60,195
59,092
63,642
66,202r
67,039'
68,646r
2 Payable in dollars
3 Payable in foreign currencies
45,161
3,998
53,805
4,083
48,711
3,798
55,350
4,845
55,014
4.078
58,630
5,012
60,226'
5,976'
60,855'
6,184'
62,030'
6,616'
By type
4 Financial claims
5
Deposits
6
Payable in dollars
7
Payable in foreign currencies
8
Other financial claims
9
Payable in dollars
10
Payable in foreign currencies
27,771
15,717
15,182
535
12,054
10,862
1,192
33,897
18,507
18,026
481
15,390
14,306
1,084
27,398
15,133
14,654
479
12,265
10,976
1,289
35,251
19,507
19,069
438
15,744
13,347
2,397
34,200
19,877
19,182
695
14,323
12,234
2,089
35,268
21,404
20,631
773
13,864
12,069
1,795
38,647'
20,250'
18,599'
1,651'
18,397'
15,381'
3,016'
39,490'
22,896'
21,405'
1,491'
16,594'
13,337'
3,257'
39,945'
21,837'
20,278'
1,559'
18,108'
14,795'
3,313'
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims
21,388
18,425
2,963
23,991
21,158
2,833
25,111
22,998
2,113
24,944
22,353
2,591
24,892
22,454
2,438
28,374
25,751
2,623
27,555
24,801
2.754
27,549
24,858
2,691
28,701'
25,110'
3,591'
14
15
Payable in dollars
Payable in foreign currencies
19,117
2,271
21,473
2,518
23,081
2,030
22,934
2,010
23,598
1,294
25,930
2,444
26,246
1,309
26,113
1,436
26,957'
1,744'
16
17
18
19
20
21
22
By area or country
Financial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
7,299
134
826
526
502
530
3,585
7,936
86
800
540
429
523
4,649
7,609
193
803
436
517
498
4,303
10,498
151
679
296
488
461
7,426
9,777
126
733
272
520
432
6,603
9,282
185
694
276
493
474
6,119
11,176'
119
760
324
567
570
7,937'
11,677'
203
680
281
519
447
8,604'
13,758'
360
1,112
352
764
448
9,150'
23
Canada
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
31
32
33
Asia
Japan
Middle Eastern oil-exporting countries'
34
Africa
35
36
37
38
39
40
41
42
43
44
Oil-exporting countries2
2,032
3,581
2,851
4,773
4,502
3,445
4,917
6,422
4,279'
16,224
1,336
125
654
12,699
872
161
19,536
2,424
27
520
15,228
723
35
14,500
1,965
81
830
10,393
554
32
17,644
2,168
84
1,242
13,024
392
23
17,241
1,746
113
1,438
12,819
413
20
19,577
1,452
140
1,468
15,182
457
31
19,742
1,894
157
1,404
15,176
18,725
2,064
188
1,617
13,553'
497'
21
19,166'
2,442'
1901
1,501
12,947'
508
15
1,657
892
3
1,871
953
141
1,579
871
3
1,571
852
9
1,834
1,001
13
2,221
1,035
22
2,068
831
12
1,934
766
20
2,015
999
15
99
1
373
0
276
5
197
5
177
13
174
14
182
14
179
15
174
16
600
583
568
9,540
213
9,824
231
1,830
1,070
452
520
2,656
9,842
239
1,659
1,335
481
602
2,658
9,288
213
1,532
1,250
424
594
2,516
10,443
226
1,644
1,337
562
642
2,946
9,863
364
1,514
1,364
582
418
2,626
9,603
327
1,377
1,229
613
389
2,836
10,486'
331
1,642'
1,395'
573
381
2,904'
All other3
Commercial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
9,105
184
1,947
1,018
423
432
2,377
1,881
1,027
311
557
2,556
517
1,781
1,988
1,951
2,074
2,083
2,165
2,381
2,464
2,649'
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
3,274
11
182
460
71
990
293
4,117
9
234
612
83
1,243
348
4,364
30
272
898
79
993
285
4,347
28
264
838
103
1,021
313
4,409
14
290
968
119
936
316
5,276
35
275
1,303
190
1,128
357
5.067
40
159
1,216
127
1,102
330
5,241
29
197
1,136
98
1.140
451
5,028'
22
128
1,101'
98
1,219'
418
52
53
54
Asia
Japan
Middle Eastern oil-exporting countries1
6,014
2,275
704
6,982
2,655
708
7,312
1,870
974
6,939
1.877
903
7,289
1,919
945
8,376
2,003
971
8,348
2,065
1,078
8,460
2,079
1,014
8,576'
2,048'
987'
55
56
Africa
Oil-exporting countries
493
72
454
67
654
87
83
731
142
746
166
718
100
618
81
764
207
57
Other3
1,006
1,054
1,092
1,368
1,163
1,198'
1. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
2. Comprises Algeria, Gabon, Libya, and Nigeria.
3. Includes nonmonetary international and regional organizations.
A60
International Statistics • May 1998
3.24
FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1998
Transaction, and area or country
Jan. Jan.
July
Jan.p
Sept.
U.S. corporate securities
1 Foreign purchases
2 Foreign sales
3 Net purchases, or sales (—)
4 Foreign countries
5
6
7
8
9
10
11
12
13
14
15
16
17
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean . . .
Middle East1
Other Asia
Japan
Africa
Other countries
18 Nonmonetary international and
regional organizations . . . .
590.714
578,203
963,888
897,851'
12,511
66,037'
12,585
66,177r
5,367
-2,402
59,041
3,134
9,075
3,833
1,104
1.415
2,715
4,478
2,226
5,816
-1,600
918
-372
-85
-57
7,845
22,215
-1,174
5,264'
173
2,061
4,780
471
341
90,130
83,877
6,253
6305
6.623
665
546
613
683
2,741
-254
2,646
-166
-2,693
-1,112
34
115
85,138
74,715
84,953
76,820
80,546
75,428
106,674
105,668
85.150
80,133
90,995
85,671
10,423
8,133
5,118
1,006
5,017
5324
10,412
8,176
5,123
1,024
5,025
5358
6.108
1,187
4,391
461
584
-118
557
2,170
-286
2,456
-64
1,545
888
2
132
5,296
241
374
5,910
5,318
-65
857
579
1,043
1,875
-344
-627
16
888
709
-36
-190
5.832
299
788
409
1,474
1.232
-304
-1,224
21
1,071
551
7
-45
1,080
88
922
1,167
-489
3,968
-51
686
849
99
91
-80
538
820
757
-405
3,559
-560
813
32
-519
-313
848
2,444
94
-33
-520
-4,091
79
-508
229
80
74
-74
90,130
83,877
6453
6305
6,623
665
546
613
683
2,741
-254
2,646
-166
-2,693
-1,112
34
115
-34
BONDS2
19 Foreign purchases
20 Foreign sales
21 Net purchases, or sales (—) .
22
23
24
25
26
27
28
29
30
31
32
33
34
35
Foreign countries
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East1
Other Asia
Japan
Africa
Other countries
36 Nonmonetary international and
regional organizations . . . .
62,627
46,045
62,605
48,283
50,762
41,297
57,972
44.446
53,036'
48,772r
52,332
43,153
57,381
44,301
13,080
16,582
14,322
9,465
13,526
4,264'
9,179
13,080
13,048
16,568
14,254
9,464
12,999
4352'
9,168
13,048
3,098
2,799
546
165
185
1,212
-200
459
4,435
-67
-474
425
593
3,069
677
7,220
142
-3,520
-3,758
49
165
5,286
74
289
-433
393,953
268,487
614,068'
477,891'
57,381
44,301
125,466
136,177'
125,295
135,585'
77,570
4,460
4,439
2,107
1,170
60,509
4,486
17,737
1,679
23,762
14,173
624
-563
74,049'
3,301
2,742
3,576
547
56,191'
6,264
34,821
1,656
17,023
9,360
1,005
767'
5,286
74
289
-433
760
4,018
1,409
5,469
78
420
-1,023
142
244
10,182
522
1.606
-79
-378
7,284
281
3,283
-9
2,700
1,885
104
27
7.586
275
34
602
-304
6,577
557
2,110
-44
3,916
2,996
103
26
5,843
300
638
135
-501
4,109
624
1,265
-I
1,591
-613
8
134
142
120
369
-109
2,111
866
3,712
-183
5,634
5,207
II
-139
3,884
199
-3,193
-2,883
88
116'
171
760
4,018
1,409
5,469
78
420
-1,023
142
244
32
Foreign securities
37 Stocks, net purchases, or sales ( - )
38
Foreign purchases
39 Foreign sales
40 Bonds, net purchases, or sales (—)
41
Foreign purchases
42
Foreign sales
43 Net purchases, or sales (—), of stocks and bonds
44 Foreign countries
45
46
47
48
49
50
51
Europe
Canada
Latin America and Caribbean
Asia
Japan
Africa
Other countries
52 Nonmonetary international and
regional organizations
-59,268
450,365
509,633
-51,369
1,114,035
-38,7OtC
719,150'
757.850'
-46,148'
1,471,878'
1,165,404
1,518,026'
-110,637
-84,*48'
-109,766
-57,139
-7,685
-11,507
-27,831
-5,887
-1,517
-4.087
-84,792'
-26,744'
-3,715
-24,485
-24,832'
-9,996'
-3,090
-1,926'
148
62,355
62,207
-3,744
95,207
98,951
-7,532
68,868
76.400
-11,337
133.992
145,329
-7,892
60,740
68,632
-4,852
123,558
128,410
-170
62,687
62,857
-7,963
122,266
130,229
-1,981
79,535
81,516
-739
163,626
164,365
2.381'
70,284'
67.903'
-4,260'
111,002'
115,262'
1.861
64.328
62.467
-3,062
115,302
118,364
148
62,355
62,207
-3,744
95,207
98,951
-3,596
-18,869
-12,744
-8,133
-2,720
-l,879r
-1,201
-3,596
-3,507
-18,906
-12,673
-8,127
-2,555
-1,831'
-1,115
-3,507
-4,006
841
824
-1,090
-428
-113
37
-10,412
-1.815
-2.421
-3,938
-2,370
-72
-248
-4,590
-1,451
-207
-4,802
95
-703
-920
-5,501
-1,153
-112
-707
-183
-273
-381
-4,388
409
1,899
892
1,828
-1,027
-340
-2,229'
557
1,112
-2,121'
l,684r
2,261'
-174
452'
-2,918
1,053
1,861
-74
-210
-4,006
841
824
-1,090
-428
-113
37
37
-71
-6
-165
-86
-89
-871
1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, Oman, Qatar,
Saudi Arabia, and United Arab Emirates (Trucial States).
-78
2. Includes stale and local government securities and securities of U.S. government
agencies and corporations. Also includes issues of new debt securities sold abroad by U.S.
corporations organized to finance direct investments abroad.
Securities Holdings and Transactions/Interest and Exchange Rates A61
3.25
Foreign Transactions1
MARKETABLE U.S. TREASURY BONDS AND NOTES
Millions of dollars; net purchases, or sales (-) during period
Area or country
Jan.—
Jan.
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.p
1 Total estimated
232,241
184,444r
6,363
2,949
23,966
16,045
16,530
16,114r
-9,259
2 Foreign countries
234,083
184,016'
5,841
2,681
24,161
15,659
16,766
15,694'
-7,649
5,841
118,781
1,429
17,980
-582
2,242
328
65,658
31,726
2,331
145,904'
3,427
22,471
1,746'
-464
6,028
99,139'
13,557
-805'
18,460
304
-1,085
403
82
2,419
11,934
4,403
-1
12,032
298
6,428
378
2
344
2,745
1,837
719
19,029
92
4,050
882
583
-291
13,130
583
-839
20,022
138
2,714
-3
16
109
13,874
3,174
-414
22,916
357
4,847
334
302
690
18,593
-2,207
-730
10,363
384
5,255
375
-67
1,395
5,845
-2,824
730
102
161
3,052
-1,525
-124
2,847
-1,746
-2,563
-2,132
18,460
304
-1,085
403
82
2,419
11,934
4,403
-1
20,785
-69
8,439
12,415
89,735
41,366
1,083
1,368
-2,687
559
-586
-2,660
39,035'
20,359
1,523
1,046'
-3,619
4
1,711
-5,334
-8,231
-6,384
37
-805
-5,358
57
-1,266
-4,149
-3,347
2,612
194
-1,559
1,063
25
-3,245
4,283
4,849
-3,458
218
-159
-769
-691
-2,880
2,802
-4,614
-2,782
461
973
-1,580
11
-3,773
2,182
-5,394
4,160
45
1,509
6,512
6,838
-1,002'
-4,784
-82
-827
3,737
-36
2,485
1,288
-10,359
-7,860
268
735
-3,619
4
1,711
-5,334
-8,231
-6,384
37
-805
-1,842
-1,390
-779
428'
552
173
522
445
32
268
14
70
-195
-190
-117
386
341
-21
-236
-74
78
420
451
-24
-1,610
-1,025
-131
522
445
32
234,083
85,807
148,276
184,016'
43,379'
140,637'
5,841
-1,189
7,030
2,681
-2,413
5,094
24,161
8,235
15,926
15,659
3,091
12,568
16,766
-12,848
29,614
15,694'
1,831'
13,863'
-7,649
-367
-7,282
5,841
-1,189
7,030
7,116
-13
-2,411
1
-2,251
0
3,455
-7
-3,877
0
3,175
-1,506
0
-2,411
1
3
4
5
6
7
8
9
10
11
Europe
Belgium and Luxembourg
Germany
Netherlands
Sweden
Switzerland
United Kingdom
Other Europe and former U.S.S.R
Canada
12
13
14
15
16
17
18
19
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
Other
20 Nonmonetary international and regional organizations
21
International
22
Latin American regional
397
-723
6,363
MEMO
23 Foreign countries
24 Official institutions
25 Other foreign
Oil-exporting countries
26 Middle East 2
27 Africa3
10,232
1
1. Official and private transactions in marketable U.S. Treasury securities having an
original maturity of more than one year. Data are based on monthly transactions reports.
Excludes nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign
countries.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
imirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
DISCOUNT RATES OF FOREIGN CENTRAL BANKS1
3.26
Percent per year, averages of daily figures
Rate on Mar. 31, 1998
Rate on Mar. 31, 1998
Country
Country
Month
effective
Month
effective
Austria
Belgium
Canada
Denmark
France
2.5
2.75
5.0
3.5
3.3
Apr. 1996
Oct. 1997
Jan. 1998
Oct. 1997
Oct. 1997
1. Rates shown are mainly those at which the central bank either discounts or makes
advances against eligible commercial paper or government securities for commercial banks or
brokers. For countries with more than one rate applicable to such discounts or advances, the
rate shown is the one at which it is understood that the central bank transacts the largest
proportion of its credit operations.
3.27
Germany
Italy
Japan
Netherlands
Switzerland
2.5
5.5
.5
2.5
1.0
Apr. 1996
Dec. 1997
Sept. 1995
Apr. 1996
Sept. 1996
2. Since February 1981, the rate has been that at which the Bank of France discounts
Treasury bills for seven to ten days.
FOREIGN SHORT-TERM INTEREST RATES'
Percent per year, averages of daily figures
1998
1997
Type or country
2 United Kingdom
5 Switzerland
8 Italy
9 Belgium
10 Japan
1995
5.93
6.63
7.14
4.43
2.94
4.30
6.43
10.43
4.73
1.20
1996
5.38
5.99
4.49
3.21
1.92
2.91
3.81
8.79
3.19
.58
1997
5.61
6.81
3.59
3.24
1.58
3.25
3.35
6.86
3.40
.58
1. Rates are for three-month interbank loans, with the following exceptions: Canada,
finance company paper; Belgium, three-month Treasury bills; and Japan, CD rate.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
5.59
7.19
3.66
3.24
1.36
3.35
3.29
6.65
3.55
.55
5.63
7.24
3.83
3.51
1.73
3.50
3.47
6.63
3.76
.52
5.71
7.52
4.02
3.68
1.91
3.65
3.57
6.49
3.72
.53
5.79
7.60
4.61
3.67
1.56
3.61
3.57
6.07
3.61
.78
5.53
7.49
4.68
3.51
1.27
3.42
3.50
6.05
3.47
.77
5.53
7.46
5.02
3.45
.98
3.36
3.45
6.12
3.53
.84
5.56
7.47
4.93
3.44
1.06
3.42
3.45
5.59
3.61
.74
A62
3.28
International Statistics • May 1998
FOREIGN EXCHANGE RATES'
Currency units per dollar except as noted
1997
Country/currency unit
Jan.
1
2
3
4
5
6
7
8
9
10
Australia/dollar1
Austria/schilling
Belgium/franc
Canada/dollar
China, P.R./yuan
Denmark/krone
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
11
12
13
14
15
16
17
18
19
20
Hong Kong/dollar
India/rupee
Ireland/pound
Italy/lira
Japan/yen
Malaysia/ringgit
Netherlands/guilder
New Zealand/dollar2
Norway/krone
Portugal/esc udo
21
22
23
24
25
26
27
28
29
30
Singapore/dollar
South Africa/rand
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
s
United Kingdom/pound2
MEMO
31 United States/dollar3
74.073
10.076
29.472
1.3725
8.3700
5.5999
4.3763
4.9864
1.4321
231.68
78.283
10.589
30.970
1.3638
8.3389
5.8003
4.5948
5.1158
1.5049
240.82
74.368
12.206
35.807
1.3849
8.3193
6.6092
5.1956
5.8393
1.7348
273.28
71.971
12.360
36.266
1.3869
8.3135
6.6922
5.2674
5.8954
1.7575
276.84
69.526
12.182
35.737
1.4128
8.3109
6.5937
5.2217
5.8001
1.7323
271.87
66.187
12.510
36.748
1.4271
8.3099
6.7752
5.3789
5.9542
1.7788
279.93
65.659
12.765
37.536
1.4409
8.3094
6.9190
5.5006
6.0832
1.8165
287.24
67.436
12.735
37.417
1.4334
8.3072
6.9089
5.4999
6.0744
1.8123
286.70
66.965
12.851
37.696
1.4168
8.3076
6.9656
5.5461
6.1253
1.8271
306.05
7.7357
32.418
160.35
1,629.45
93.96
2.5073
1.6044
65.625
6.3355
149.88
7.7345
35.506
159.95
1,542.76
108.78
2.5154
1.6863
68.765
6.4594
154.28
7.7431
36.365
151.63
1,703.81
121.06
2.8173
1.9525
66.247
7.0857
175.44
7.7373
36.302
146.92
1,721.09
121.06
3.2972
1.9800
63.556
7.0807
179.07
7.7314
37.289
150.30
1.697.08
125.38
3.3791
1.9524
62.420
7.0588
176.84
7.7456
39.400
145.33
1,743.86
129.73
3.7907
2.0051
59.137
7.2630
181.91
7.7425
39.391
138.19
1,787.87
129.55
4.4093
2.0472
57.925
7.5007
185.80
7.7412
39.008
137.71
1,788.28
125.85
3.8148
2.0432
58.286
7.5530
185.54
7.7457
39.566
136.73
1,798.95
129.08
3.7442
2.0597
57.260
7.5830
187.02
1.4171
3.6284
772.69
124.64
51.047
7.1406
1.1812
26.495
24.921
157.85
1.4100
4.3011
805.00
126.68
55.289
6.7082
1.2361
27.468
25.359
156.07
1.4857
4.6072
950.77
146.53
59.026
7.6446
1.4514
28.775
31.072
163.76
1.5597
4.7145
929.42
148.32
59.723
7.5765
1.4516
29.696
37.543
163.30
1.5820
4.8394
1,035.22
146.30
60.132
7.5589
1.4069
31.794
39.092
168.89
1.6518
4.8706
1,494.04
150.46
61.591
7.7977
1.4393
32.502
44.309
165.97
1.7477
4.9417
1,707.30
153.93
62.281
8.0193
1.4748
34.117
52.983
163.50
1.6509
4.9337
1,628.42
153.61
62.363
8.0723
1.4631
32.948
45.987
164.08
1.6186
4 9745
1,489.26
154.94
62.059
7.9670
1.4900
32.517
41.348
166.19
97.07
96.37
98.82
100.52
99.93
100.47
87.34
1. Averages of certified noon buying rates in New York for cable transfers. Data in this
table also appear in the Board's G.5 (405) monthly statistical release. For ordering address,
see inside front cover.
2. Value in U.S. cents.
3. Index of weighted-average exchange value of U.S. dollar against the currencies of ten
industrial countries. The weight for each of the ten countries is the 1972-76 average world
trade of that country divided by the average world trade of all ten countries combined. Series
revised as of August 1978 (see Federal Reserve Bulletin, vol. 64 (August 1978), p. 700).
A63
Guide to Statistical Releases and Special Tables
STATISTICAL RELEASES—List Published Semiannually, with Latest Bulletin Reference
Anticipated schedule of release dates for periodic releases
Issue
December 1997
Page
A72
Issue
Page
SPECIAL TABLES—Data Published Irregularly, with Latest Bulletin Reference
Title and Date
Assets and liabilities of commercial banks
March 31, 1997
June 30, 1997
September 30, 1997
December 31, 1997
September
November
February
May
1997
1997
1998
1998
A64
A64
A64
A64
Terms of lending at commercial banks
May 1997
August 1997
November 1997
February 1998
October
November
February
May
1997
1997
1998
1998
A64
A68
A68
A66
Assets and liabilities of U.S. branches and agencies offoreign banks
March 31, 1997
June 30, 1997
September 30, 1997
December31, 1997
August
November
February
May
1997
1997
1998
1998
A64
A72
A72
A70
January
July
October
January
1997
1997
1997
1998
A64
A64
A68
A64
Residential lending reported under the Home Mortgage Disclosure Act
1994
1995
1996
September 1995
September 1996
September 1997
A68
A68
A68
Disposition of applications for private mortgage insurance
1996
September 1997
A76
Pro forma balance sheet and income statements for priced service operations
September 30, 1996
March 31, 1997
June 30, 1997
September 30, 1997
A64
4.20
Special Tables • May 1998
DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities
Consolidated Report of Condition, December 31, 1997
Millions of dollars except as noted
Banks with foreign offices1
Banks with domestic
offices only2
Item
1 Total assets'
2 Cash and balances due from depository institutions
3 Cash items in process of collection, unposted debits, and currency and coin
4
Cash items in process of collection and unposted debits
5
Currency and coin
6
Balances due from depository institutions in the United States
7
Balances due from banks in foreign countries and foreign central banks
8
Balance1; due from Federal Reserve Banks
Over 100
Under 100
4,980,275
4,286^06
3,302,317
2.608,348
1,367,255
310,703
353,952
267,795
270,424
120,583
n.a.
n.a.
48,831
79,522
21,489
184,266
118.465
88,329
30,135
35,741
8.736
21.324
67,450
36,658
23,723
12.935
18,997
2,347
9,448
16,078
14.600
6,272
148,627
458,418
70,943
404,552
68,929
318,894
60,886
83,541
18,813
25,524
144,990
n.a.
n.a.
76,430
n.a.
n.a.
n.a.
373,873
249,364
n.a.
n.a.
1,943
124,509
102,329
n.a.
n.a.
38,839
n.a.
n.a.
24,229
37,653
2.661
34.991
22.621
16.045
6,014
562
239,783
166,154
57,074
107,788
1,293
73,628
58,183
652
14,794
71,701
20,305
51,395
15,718
37,570
n.a.
n.a.
22,408
n.a.
n.a.
n.a.
233,220
161,179
n.a.
n.a.
1,293
72,041
58,183
n.a.
n.a.
28.002
18,879
9,123
14,422
75,754
2,051
73,703
39,875
30,674
8,978
223
124,668
78.194
20,163
57.419
612
46,474
38,482
1.233
6,759
9,402
9,204
198
8,310
8,689
16,836
8,067
16,162
5,844
9,874
5,222
9,200
2,377
5,933
177,637
203,301
119,713
41,726
16,198
2,954,28:
4,048
2.950,240
54 340
26
2.895.874
2,670,564
3,237
2,667,327
n.a.
n.a.
n.a.
1,882,469
1,715
1,880,755
34,834
25
1,845,895
1,598,745
904
1,597,841
n.a.
n.a.
n.a.
886,238
1,657
884.581
16,875
0
867,706
185,580
676
184,905
2,631
0
182,274
1.235,471
670,108
n.a
44,701
791,322
n.a.
n.a.
1,990
n.a.
n.a.
1.207,331
87.550
26,977
713,664
98,047
615,618
41,080
338,060
59,259
n.a.
n.a.
n.a.
43,912
632,982
n.a.
n.a.
881
n.a.
n.a.
81,710
41,904
10,135
29,671
10,095
614,559
479,828
134,731
1,693
319
1,373
641,968
40,583
3,792
412,510
66,985
345.525
22,103
162,981
55,912
40,922
10,085
4,904
9,307
456,219
450,058
6,160
584
319
265
459,881
38,807
11,608
246.974
28.266
218,709
16,628
145,864
3.231
2.609
377
245
15,584
145,570
144,887
682
208
n.a.
n.a.
105,482
8,160
11,577
54,181
2,797
51.384
2,349
29,216
116
n.a.
n.a.
n.a.
19,021
31.194
n.a.
n.a.
555,041
230,210
324,831
519,856
n.a.
n.a.
290,725
109,850
180,875
255,539
n.a.
n.a.
237,169
118.667
118.502
27,147
1,693
25,454
18,394
122,553
18,381
91.346
n.a.
n.a.
n.a.
n.a.
96,616
10,906
113,525
7,807
105,718
n.a.
n.a.
89.148
10.894
82,318
680
81,639
18,108
63.531
86,005
6,587
8,117
22
8,095
1,555
6.539
9.892
900
911
n.a.
t
t
n.a.
MEMO
9 Non-interest-bearing balances due from commercial banks in the United States
(included in balances due from depository institutions in the United States)
10 Total securities, heId-to-maturity (amortized cost) and available-for-sale (fair value) . . .
11 U.S. Treasury securities
12 U.S. government agency and corporation obligations (excludes mortgage-backed
securities)
13
Issued by U.S. government agencies
14
Issued by U.S. government-sponsored agencies
15 Securities issued by states and political subdivisions in the United States
16
General obligations
17
Revenue obligations
18
Industrial development and similar obligations
19 Mortgage-backed securities (MBS)
20
Pass-through securities
21
Guaranteed by GNMA
22
Issued by FNMA and FHLMC
23
Privately issued
24
Other mortgage-backed securities (includes CMOs, REMICs, and stripped MBS) .
25
Issued or guaranteed by FNMA, FHLMC or GNMA
26
Collateralized by MBS issued or guaranteed by FNMA, FHLMC, or GNMA . .
27
All other mortgage-backed securities
28 Other debt securities
29
Other domestic debt securities
Foreign debt securities
Equity securities
In[vestments in mutual funds and other equity securities with readily determinable
fair value
33
All other equity securities
31,674
860,854
150,642
145.072
5.599
139,473
76,643
57,002
18,801
840
380,436
254,339
80,436
171,960
1,943
126,096
102,329
2.078
21,689
82,537
34 Federal funds sold and securities purchased under agreements to resell...
35 Total loans and lease-financing receivables, gross
36 LESS: Unearned income on loans
37 Total loans and leases (net of unearned income)
38 LESS: Allowance for loan and lease losses
39
LESS; Allocated transfer risk reserves
40 EQUALS: Total loans and leases, net
64
65
66
67
68
69
Total loans and leases, gross, by category
Loans secured by real estate
Construction and land development
Farmland
,
One- to four-family residential properties
Revolving, open-end loans, extended under lines of credit
All other loans
Muliifamily (rive or more) residential properties
Nonfarm nonresidential properties
Loans to depository institutions
Commercial banks in the United States
Other depository institutions in the United States
Banks in foreign countries
Loans to finance agricultural production and other loans to farmers
Commercial and industrial loans
U.S. addressees (domicile)
Non-US, addressees (domicile)
Acceptances of other banks
U.S. banks
Foreign banks
Loans to individuals for household, family, and other personal expenditures (includes
purchased paper)
Credit cards and related plans
Other (includes single payment and installment)
Obligations (other than securities) of states and political subdivisions in the United States
(includes nonrated industrial development obligations)
All other loans
Loans to foreign governments and official institutions
Other loans
Loans for purchasing and carrying securities
All other loans (excludes consumer loans)
Lease-financing receivables
70
71
72
73
74
75
76
77
Assets held in trading accounts
Premises and fixed assets (including capitalized leases)
Other real estate owned
Investments in unconsolidated subsidiaries and associated companies
Customers' liability on acceptances outstanding
Net due from own foreign offices. Edge Act and agreement subsidiaries, and IBFs
Intangible assets
All other assets
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
85,058
99.759
296,558
66.583
4,430
5.628
17,208
61,456
156,507
295,546
40.087
2,599
5.183
16,985
n.a.
48.197
115.682
\
53,911
952
20.710
1.419
405
215
n.a.
12,434
35.343
31,666
887
30,779
14,147
10,283
3,809
55
15,985
9,991
3,199
6,753
38
5,994
5,664
193
137
1,435
1,496
468
1,029
n.a.
719
5,786
412
40
824
5,482
Commercial Banks A65
4.20
DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities—Continued
Consolidated Report of Condition, December 31, 1997
Millions of dollars except as noted
Banks with foreign offices'
Domestic
total
Banks with domestic
offices only2
Under 100
Domestic
78 Total liabilities, limited-life preferred stock, and equity capital.
4,980,275
1,367,255
310,703
79 Total liabilities
4,565,124
3,871,154
3,049,396
2355,427
1,237,869
277,858
80 Total deposits
81 Individuals, partnerships, and corporations
82 U.S. government
83 Slates and political subdivisions in the United States
84 Commercial banks in the United States
85 Other depository institutions in the United States
86 Foreign banks, governments, and official institutions
87
Banks
88
Governments and official institutions
89 Certitied and official checks
3,399,218
3.022,246
n.a.
n.a.
71,662
n.a.
141,696
n.a.
2,873.180
2,673,483
6,676
123,675
35.650
7,708
9,406
n.a.
n.a.
16,581
2,112,934
1.837.180
n.a.
1,586.897
1,488,417
4,998
47,822
25,428
3,471
8,789
7.357
1,431
7,972
1,018,875
943,052
1,422
55,051
9.154
2,888
604
573
30
6.704
267,408
242,014
256
20,802
1,069
1.349
13
757,063
656,510
3,281
42,868
26.000
3,406
8,418
n.a.
n.a.
16.581
426,460
367,679
2.049
18,305
19,971
2.580
7.904
7,096
808
7,972
251,983
220,261
1,072
17,090
5,623
729
504
497
7
6.704
78,621
68.570
161
7.472
406
97
9
n.a.
n.a.
1.905
587.164
510.998
3.172
18.604
25,997
3.397
8,415
n.a.
n.a.
16,581
375,838
323,912
1,998
11,505
19,971
2,578
7,902
7,096
806
7,972
170,095
149,932
1.024
5.585
5.622
725
504
497
7
6,704
41,231
37,154
150
1,514
404
94
9
n.a.
n.a.
1,905
2,116,116
2,016,973
3,395
80,808
9,651
4.302
988
n.a.
1,160,437
1,120,738
2,950
29,517
5,457
891
885
262
623
766,892
722,791
351
37,961
3,530
2.159
100
76
23
188,787
173,444
95
13.329
663
1.252
4
283,517
20.537
n.a.
172,325
13.462
n.a.
103,977
n.a.
77,359
3,731
101
110,999
215
4,400
n.a.
22,188
3.299
230
1
3,944
n.a.
2,940
129385
32,845
90
91
92
93
94
95
96
97
98
99
100
1111
102
103
104
105
106
107
108
109
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
n.a.
17.414
Total transaction accounts
Individuals, partnerships, and corporations
U.S. government
States and political subdivisions in the United States. ..
Commercial banks in the United States
Other depository institutions in the United States
Foreign banks, governments, and official institutions. . .
Banks
Governments and official institutions
Certified and official checks
Demand deposits (included in total transaction accounts) .
Individuals, partnerships, and corporations
U.S. government
States and political subdivisions in the United States.. .
Commercial banks in the United States
Other depository institutions in the United States
Foreign banks, governments, and official institutions.. .
Banks
Governments and official institutions
Certified and official checks
Total nontransaction accounts
Individuals, partnerships, and corporations
U.S. government
States and political subdivisions in the United States. .
Commercial banks in the United States
Other depository institutions in the United States
Foreign banks, governments, and official institutions..
Banks
Governments and official institutions
Federal funds purchased and securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Trading liabilities
Other borrowed money
Banks' liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs
All other liabilities
127 Total equity capital
412.358
24,498
206,192
325,626
17,319
61,779
n.a.
118.134
3,302,317
364,176
24,498
n.a.
287,268
13,685
n.a.
103.977
n.a.
61.439
n.a.
141,079
99,590
41,490
8,805
331,699
20,537
206,089
210,683
17,097
57,352
n.a.
93,005
252,921
415,151
1,905
n.a.
n.a.
MEMO
128 Trading assets at large banks4
129
U.S. Treasury securities (domestic offices)
130 U.S. government agency corporation obligations
131
Securities issued by states and political subdivisions in the United States
132
Mortgage-backed securities
133 Other debt securities
134
Certificates of deposit
135
Commercial paper
136
Bankers acceptances
137
Other trading assets
138
Revaluation gains on interest rate, foreign exchange rate, and other
commodity and equity contracts
139 Trading assets in foreign offices
140 Total individual retirement (IRA) and Keogh plan accounts
141 Total brokered deposits
142
Fully insured brokered deposits
143
Issued in denominations of less than $100.000
144
Issued in denominations of $100,000. or in denominations greater than $100,000 a
participated out by the broker in shares of $100,000 or less
145 Money market deposit accounts (MMDAs)
146 Other savings deposits (excluding MMDAs)
147 Total time deposits of less than $100,000
148 Total time deposits of $100,000 or more
149 All negotiable order of withdrawal (NOW) accounts
150 Number of banks
NOTE. Table 4.20 has been revised; it now includes data that was previously reported in
table 4.22. which has been discontinued.
The notation "n.a." indicates the lesser detail available from banks that don't have foreign
offices, the inapplicability of certain items to banks that have only domestic offices or the
absence of detail on a fully consolidated basis for banks that have foreign offices.
I All transactions between domestic and foreign offices of a bank are reported in "net due
from" and "net due to" lines. All other lines represent transactions with parties other than the
domestic and foreign offices of each bank. Because these intraoffice transactions are nullified
by consolidation, total assets and total liabilities for the entire bank may not equal the sum of
assets and liabilities respectively of the domestic and foreign offices.
Foreign
offices include branches in foreign countries, Puerto Rico, and U.S. territories and
possessions; subsidiaries in foreign countries; all offices of Edge Act and agreement corporahttp://fraser.stlouisfed.org/
tions wherever located; and IBFs.
Federal Reserve Bank of St. Louis
296,271
151,485
95,043
91,647
17,960
2.024
1,230
5.909
10,331
1,317
119
1,317
9,536
295,515
41,904
0
152,057
54,794
45.619
IO.D78
151,480
95,043
35.540
651,192
344,736
741.309
378.879
166,818
9,128
9,128
90,890
17,876
1,701
1,158
5,793
10,269
1.317
83
1,313
9,482
757
84
32.3
72
116
62
(I
41,899
0
77,639
31,056
24,074
5,267
5
0
60,120
22,174
20,110
3,656
14 298
1.565
1,435
1,156
18.807
445,716
185,806
319,599
209,316
50,008
16,455
177,798
132.749
320.783
135,563
80,272
279
27.678
26,181
100,928
34,000
36,538
2,763
6.198
35
4
54
2. "Over 100" refers to banks whose assets, on June 30 of the preceding calendar year,
were $100 million or more. (These banks tile the FFIEC 032 or FFIEC 033 Call Report.)
"Under 100" refers to banks whose assets, on June 30 of the preceding calendar year, were
less than $100 million. (These banks tile the FFIEC 034 Call Report.)
3. Because the domestic portion of allowances for loan and lease losses and allocated
transfer risk reserves are not reported for banks with foreign offices, the components of total
assets (domestic) do not sum to the actual total (domestic).
4. Components of "Trading assets at large banks" are reported only by hanks with either
total assets of $1 billion or more or with $2 billion or more in the par/notional amount of their
off-balance-sheet derivative contracts.
A66
4.23
Special Tables • May 1998
TERMS OF LENDING AT COMMERCIAL BANKS
Survey of Loans Made, February 2-6, 1998
A. Commercial and industrial loans made by all commercial banks1
Item
Wcighledaverage
effective
loan rate
(percent)
Amount of
loans
(millions
of dollars)
Average loan
size
(thousands of
dollars)
Amount of loans (percent)
Weightedaverage^
maturity
Days
Secured by
collateral
Subject to
prepayment
penalty
Made under
commitment
Most
common
base pricing
rate4
LOAN RISK5
6.87
6.10
6.32
7.04
7.33
124,225
12,286
32,793
41,859
23.328
693
1,743
1,436
579
608
351
157
328
444
281
37.8
36.0
38.6
35.9
35.1
10.8
1.9
8.4
15.5
9.8
30.9
67.4
47.5
19.8
16.2
74.5
81.3
67.7
78.6
78.8
Foreign
Foreign
Foreign
Foreign
Fed funds
By malurity/repricing interval*
6 Zero interval
7
Minimal risk
8
Low risk
9
Moderate risk
10 Acceptable risk
8.62
7.19
7.50
8.60
9.57
19,903
711
2,809
7,687
4,149
249
372
377
204
174
609
369
421
863
637
53.4
22.7
38.1
60.6
70.5
14.9
4.9
16.8
19.7
17.0
8.4
44.7
8.0
10.7
8.1
74.7
69.8
91.8
93.8
95.2
Prime
Prime
Prime
Prime
Prime
1 ] Daily
12 Minimal risk
13 Low risk
14 Moderate risk .
15 Acceptable risk
6.27
6.00
5.98
6.50
6.42
49,265
7,112
15,773
14,008
8,915
1,796
5,933
6,769
1,299
2,340
113
18
37
258
85
33.9
39.2
47.6
29.5
11.9
9.5
.5
9.9
15.8
4.3
32.9
73.1
54.0
11.1
5.2
62.2
72.8
52.5
65.6
56.6
Fed funds
Foreign
Fed funds
Fed funds
Fed funds
16 2 to 30 days
17 Minimal risk . .
18 Low risk
19 Moderate risk .
20
Acceptable risk
6.58
5.97
6.24
6.55
7.19
37,169
3,283
9,527
13,879
6,625
1,521
3,128
2,770
2,069
1,545
325
267
230
31.4
36.3
26.2
23.6
38.2
10.8
3.3
4.5
14.4
12.2
41.2
71.5
53.9
30.2
30.5
88.7
99.4
817
86.3
92.8
Foreign
Foreign
Foreign
Foreign
Foreign
21 31 to 365 days
y
M i i l risk
rik ..
Minimal
Low risk
Moderate risk
Acceptable risk.
6.86
6.38
6.58
7.00
7.04
13,777
1,044
3,605
4,350
3,153
431
485
468
398
833
468
1168
300
394
390
35.9
23.7
21.3
35.9
41.5
8.4
4.6
5.4
12.5
9.6
34.2
30.5
43.7
35.1
26.4
81.2
91.9
71.8
80.5
89.2
Foreign
Foreign
Foreign
Foreign
Foreign
74.8
69.6
78.5
73.9
69.7
3.7
12.8
3.8
2.0
2.0
13.2
18.9
12.2
11.1
33.8
62.3
10.7
89.7
45.2
81.7
Prime
Other
Prime
Prime
Prime
83.9
69.2
38.7
30.8
29.6
22.6
13.2
7.2
4.3
14.4
29.3
35.2
76.7
87.6
82.6
68.7
Prime
Prime
Foreign
Fed funds
1 All consumer and industrial loans
2
Minimal risk
3
Low risk
4
Moderate risk
5
Acceptable risk
22
23
24
25
Months
26 More than 365 days
27
Minimal risk
28
Low risk
29 Moderate risk
30
Acceptable risk
8.33
8.96
7.93
8.46
3,354
43
1,010
1,643
367
252
66
576
317
197
86
39
148
62
56
Weightedaverage risk
rating5
Weightedaverage
maturity/
repricing
interval
Days
SIZE OF LOAN
31
32
33
34
1-99
100-999
1,000-9,999
10.000+
9.70
8.64
7.24
6.33
3,074
11,111
34,334
75,707
3.1
3.2
2.9
2.6
155
93
81
47
Average size
(thousands
of dollars)
BASE RATE OF LOAN 4
35
36
37
38
39
Prime7
Fed funds
Other domestic
Foreign
Other
Footnotes appear at the end of the table.
9.08
6.14
6.16
6.47
6.95
22,039
33,767
13,294
38,958
16,167
3.1
2.8
2.5
2.5
2.7
153
9
14
38
161
67.3
22.8
9.2
46.7
30.7
20.3
5.4
28.1
6.3
5.8
9.4
29.5
27.8
53.6
10.1
79.4
46.5
74.8
95.4
75.2
187
7,273
2,972
3,730
387
Financial Markets A67
4.23
TERMS OF LENDING AT COMMERCIAL BANKS
Survey of Loans Made, February 2-6, 1998
B. Commercial and industrial loans made by large domestic banks'
Amount of loans (percent)
Weightedaverage
maturity
Weightedaverage
effective
loan rate
(percent)2
Amount of
loans
(millions
of dollars)
7.05
6.11
6.22
7.12
7.63
59,650
4,056
11,774
24.649
10,316
934
5,248
2,978
896
562
434
398
300
590
352
31.9
7.5
21.6
37.3
38.5
By maturity/repricing interval
6 Zero interval
7
Minimal risk
8
Low risk
9
Moderate risk
10 Acceptable risk
8.33
6.57
7.02
8.34
9 19
14,516
485
1,953
5,469
2,556
477
1,831
1,202
390
208
584
341
430
877
558
11 Daily
12 Minimal risk
13 Low risk
14 Moderate risk
15 Acceptable risk
6.48
5.98
5.97
6.80
6.65
19,459
1,427
4,564
7,339
3,690
1,253
6,134
4,492
908
1,483
16 2 to 30 days
17 Minimal risk
18 Low risk
19
Moderate risk
20
Acceptable risk
6.61
5.99
6.06
6.51
7.38
17,433
1,382
3,514
8,339
2,722
21 31 to 365 days
22
Minimal risk
23
Low risk
24
Moderate risk
25
Acceptable risk
6.75
6.33
6.16
6.80
7.61
5,835
668
1.377
1,931
1,059
Average loan
size
(thousands of
dollars)
Most
common
base pricing
rate4
Subject to
prepayment
penalty
Made under
commitment
12.5
.7
17.4
14.1
7.6
12.1
36.3
19.6
10.0
77
72.6
88.9
74.1
76.8
74.0
Prime
Other
Domestic
Prime
Prime
47.4
8.2
30.7
56.7
67.5
10.9
14.0
14.4
7.0
32.0
8.1
11.7
3.4
69.3
59.0
91.0
97.2
96.2
Prime
Prime
Other
Prime
Prime
229
51
121
450
110
24.7
4
23.1
38.1
16.7
19.3
1.4
33.2
21.7
4.8
5.0
30.6
4.8
2.7
1.8
60.1
84.0
57.5
59.6
41.6
Fed funds
Other
Domestic
Domestic
Fed funds
1,522
9,873
5,049
3,514
1,566
316
162
338
320
328
23.1
17.6
11.6
18.7
34.8
10.4
.0
7.5
9.7
5.6
19.8
54.1
35.3
12.6
12.8
85.9
00.0
83.3
81.2
91.1
Foreign
Domestic
Domestic
Foreign
Foreign
1,777
10,139
3,514
1,230
1,432
612
1660
306
31.5
1.8
22.5
34.5
45.3
4.4
23.1
13.7
44.1
21.3
20.0
87.2
96.7
81.7
88.7
84.3
Foreign
Foreign
Foreign
Foreign
Foreign
29.0
13.0
41.0
73.8
40.6
92.5
Other
Prime
Prime
5.5
9.2
12.7
12.5
91.1
90.0
76.6
67.2
Prime
Prime
Prime
Domestic
Days
Secured by
collateral
LOAN RISK
1 All consumer and industrial loans
2
Minimal risk
3
Low risk
4
Moderate risk
5
Acceptable risk
575
593
9.1
3.6
Months
26 More than 365 days
27
Minimal risk
28
Low risk
29
Moderate risk
30
Acceptable risk
8.02
1,974
1,218
6.76
8.24
8.89
330
1,346
213
2,999
1,996
358
38
62
48
Weightedaverage risk
rating5
Weightedaverage
maturity/
repricing
interval
63.9
48.5
68.4
64.4
Days
SIZE OF LOAN
31
32
33
34
1-99
100-999
1,000-9,999
10.000+
9.45
8.71
7.51
6.48
1,126
5,851
17,161
35,512
3.4
3.3
3.0
2.7
41
52
50
86
80.7
68.1
39.5
20.7
39.2
20.9
12.4
10.2
Average size
(thousands
of dollars)
BASE RATE OF LOAN 4
35
36
37
38
39
7
Prime
Fed funds
OUier domestic
Foreign
Other
Footnoles appear ai the end of the table.
8.89
6.14
6.13
6.72
6.76
14,446
9,712
10,863
11,225
13,405
3.2
3.0
2.5
2.8
2.7
13
47
120
63.7
19.4
8.7
34.9
22.9
13.9
16.4
23.7
7.2
3.8
9.2
1.8
18.5
20,2
9.5
73.2
42.6
73.4
91.1
77.5
313
7,774
5,405
3.043
1.242
A68
4.23
Special Tables • May 1998
TERMS OF LENDING AT COMMERCIAL BANKS
Survey of Loans Made, February 2-6, 1998
C. Commercial and industrial loans made by small domestic banks1
Amount of loans (percent)
WeightedWeightedaverage
effective
loan rate^
(percent)2
Amount of
loans
(millions
of dollars)
8.12
7.95
7.38
8.69
8.40
11.902
479
3,797
3,337
2,339
By maturity/repricing interval
6 Zero interval
7
Minimal risk
8
Low risk
S) Moderate risk
10 Acceptable risk
9.17
8.23
8.57
9.21
9.69
3.739
74
11 Daily
12 Minimal risk
1 3 Low risk
14 Moderate risk
15 Acceptable risk
7.22
8.16
6.20
8.15
8.56
2,466
89
1,378
341
138
254
122
2.103
16 2 to 30 days
17 Minimal risk
18 Low risk
19 Moderate risk
20
Acceptable risk
7 35
6.87
6.71
7.44
7.98
2.057
23)
151
471
505
501
269
271
165
319
21 31 to 365 days
22
Minimal risk
23
Low risk
24 Moderate risk
25
Acceptable risk
7.64
8.41
7.99
8.22
6.82
2,231
129
537
541
669
83
64
77
62
260
hem
Average loan
size
(thousands of
dollars)
Made under
commitment
Most
common
base pricing
rate4
maturity
Secured by
collateral
Callable
Subject to
prepayment
penally
837
568
1266
665
659
64.6
49.4
42.9
71.7
91.4
15.9
39.3
11.7
22 9
6.2
18.9
8.2
31.3
16.5
197
74.7
71.8
63.5
75.6
91.4
Prime
Prime
Prime
Prime
Prime
650
525
80.3
55.8
58.7
82.9
96.8
21.3
23.8
27.5
24.1
8.9
4.8
6.8
9.2
18.5
84 9
77.8
94.5
80.0
88.3
Prime
Prime
Prime
Prime
Prime
9.6
475
31.1
59.9
3.4
51.6
83.0
20.7
.5
21.0
5.6
45.8
20.0
71.7
34.5
4.8
52.6
79.6
27.9
63.2
90.8
Fed funds
Prime
Fed funds
Prime
Prime
254
138
147
362
350
47.2
22.0
40.2
44 1
802
15.0
66.0
4.4
24.5
1.8
19.7
5.2
19.2
29.1
31.5
85.4
89.3
61.0
86.7
95.4
Foreign
Foreign
Foreign
Foreign
Foreign
385
686
298
267
73.8
60.1
59.4
61.3
94.4
16.4
37.4
31.8
21.1
1.7
15.4
7.9
99
29.8
16.5
72.3
58.8
72.0
63.1
98.2
Foreign
Prime
Foreign
Olher
Foreign
8.0
2.7
73.2
12.8
97.4
64.3
55.6
Prime
Other
Prime
Other
Other
67.5
80.1
887
50.4
Prime
Prime
Foreign
Fed funds
Days
LOAN RISK 5
1 All consumer and industrial loans
2 Minimal risk
3
Low risk
4
Moderate risk
5
Acceptable risk
114
RS
230
81
140
6
751
1,614
874
80
51
135
71
84
168
174
171
739
814
209
681
48
199
476
7.2
Months
26 More than 365 days
27
Minimal risk
28
Low risk
29
Moderate risk
30 Acceptable risk
8.81
9.82
8.50
9.51
9.04
1.292
33
651
285
116
113
51
421
63
99
134
47
207
60
72
Weightedaverage risk
rating5
Weightedaverage
maturity/
repricing
interval
94.8
85.9
96 9
98.3
97.5
11.7
59
11.2
5.6
.3
25
20.1
Days
SIZE OF LOAN
31
32
33
34
1-99
100-999
1,000-9.999
10,000+
9.89
9.02
7^53
6.59
1.87]
3.364
4^102
2.565
2.9
223
30
I78
361
27
27
26
87.0
82.4
653
23.9
23.9
24.2
\2.5
4.4
2.5
77
17.0
48.6
Average size
(thousands
of dollars)
BASE RATE OF LOAN 4
35
36
37
38
39
7
Prime
Fed funds
Other domestic
Foreign
Olher
Footnoles appear at the end of the table.
9.35
6.27
7.65
6.73
8.04
5,273
1.407
KM
2.605
2,513
2.9
2 2
1.8
1.0
2.8
252
17
214
80
394
83.1
8.4
47.1
55.7
67.4
24.8
4.5
47.5
9.9
8.4
6.9
83.6
1.8
22.8
4.6
87.7
7.6
77.5
97.7
60.9
77
1.190
51
1.579
81
Financial Markets A69
4.23
TERMS OF LENDING AT COMMERCIAL BANKS
Survey of Loans Made. February 2-6, 1998
D. Commercial and industrial loans made by U.S. branches and agencies of foreign banks'
Weightedaverage
effective
loan rate
(percent)'
Amount of
loans
(millions
of dollars)
6.39
5.99
6.15
6.49
6.81
52.674
7,751
17,222
13.873
10,673
4,586
9,176
7,164
3,801
3,299
9.89
8.63
8.81
9.35
10.76
1.648
152
105
604
720
11 Daily
12 Minimal risk
13 Low risk
14 Moderate risk
15 Acceptable risk
6.04
Average loan
size
(thousands of
dollars)
Amount of loans (percent)
Weightedaverage
maturity
Mo?,t
common
base pricing
rate4
Subject to
prepayment
penalty
Made under
commitment
54.2
86.4
70.1
37.9
23.6
76.5
78.0
64.3
82.6
80.6
Foreign
Foreign
Foreign
Fed funds
Fed funds
Prime
Pnme
Prime
Prime
Prime
Secured by
collateral
Callable
158
10
144
149
132
38.3
50.1
49.2
24.8
19.4
1.6
16.2
12.7
595
810
411
610
638
903
1021
789
1235
700
45.4
52.6
28.7
36.2
49.2
44.8
4.7
49.9
58.9
35.8
19.0
92.3
14.7
10.9
12.5
99.3
100.0
88.6
00.0
100.0
12,528
24,058
14,915
9,411
9,636
31
5.97
5.96
6.07
6.19
27,340
5,595
9,831
6,328
5,086
2
4
56
57
40.6
48.8
65.2
18.2
6.6
2.9
.0
.4
8.7
3.8
50.4
84.8
74.4
19.6
7.6
64.6
69.8
53.6
72.7
66.6
Fed funds
Foreign
Fed funds
Fed funds
Fed funds
16 2 to 30 days
17 Minimal risk
18 Low risk
19 Moderate risk
20
Acceptable risk
6.47
5.89
6.31
6.53
6.93
17,679
1,749
5.540
5,035
3,402
4,271
5,041
5,552
3,942
3,477
255
22
333
171
128
37.9
52.4
34.3
29.7
34.8
10.6
.5
2.6
64.6
91.0
68.6
59.6
44.4
91.8
99.9
82.5
948
93.9
Foreign
Foreign
Foreign
Foreign
Foreign
21 31 to 365 days
22
Minimal risk
23
Low risk
24
Moderate risk
25
Acceptable risk
6.67
5.45
6.48
6.86
6.71
5,712
246
1,691
1,878
1.424
2,985
3,467
4.499
2,788
3,046
354
87
296
245
202
25.5
63.7
8.3
29.9
13.8
52.4
87.7
54.0
50.3
35.7
78.5
96.3
63.7
77.1
88.7
Foreign
Foreign
Foreign
Foreign
Foreign
26 More than 365 days
27
Minimal risk
28
Low nsk
29
Moderate risk
30
Acceptable risk
8.26
*
Days
LOAN RISK
1 All consumer and industrial loans
2
Minimal risk
3
Low risk
4
Moderate risk
5
Acceptable risk
By maturiry/repricing interval*3
6 Zero interval
7
Minimal risk
8
Low risk
9
Moderate risk
10 Acceptable risk
21.3
19.0
9.0
.7
13.5
17.7
51
22.3
57 0
90.7
Prime
8.33
29
60
4.5
95.5
100.0
Foreign
8.50
38
59
14.6
37.4
100.0
Prime
29.4
42.4
54.5
54.8
91.5
93.3
88.7
71.4
Prime
Foreign
Foreign
Fed funds
Weightedaverage, risk
rating5
Weightedaverage
maturity/
repricing
interval
Days
SIZE OF LOAN
31 1-99
32 100-999
33 1,000-9,999 .
34 10,000 +
8.61
7.76
6.80
6.17
77
1,896
13.071
37,630
3.1
3.1
2.9
2.5
86
69
36
13
52.3
49.4
29.3
40.9
29.8
24.9
14.4
4.7
Average size
(thousands
of dollars)
BASE RATE OF LOAN 4
35
36
37
38
39
Prime'
Fed funds
Other domestic
Foreign
. ..
Other
9.68
6.12
6.25
6.33
2,321
22.648
2,327
25,129
3.2
2.8
2.5
2.3
NOTE. This table has been revised to reflect several changes in the E.2 statistical release.
First, business loan pricing information is now disaggregated by risk categories for most
loans. Second, the previous disaggregation of loans by maturity categories has been replaced
by a "maturity/repricing interval," which measures the period from the day the loan is made
until it is next scheduled to reprice (for loans that reprice), or the period from the day the loan
is made until it is scheduled to mature (for loans that do not reprice). Third, information on
whether loans are callable or subject to prepayment penalties is now being collected and
published. In addition to these new loan characteristics, the survey now includes gross
business loan extensions of U.S. branches and agencies of foreign banks.
1. As of December 31, 1996, assets of most of the large banks were at least $7.0 billion.
Median total assets for all insured banks were roughly $62 million. Assets at all U.S. branches
and agencies averaged 1.3 billion.
2. Effective (compounded) annual interest rates are calculated from the stated rate and
other terms of the loans and weighted by loan amount. The standard error of the loan rate for
all commercial and industrial loans in the current survey (line 1. column 1) is 0.13 percentage
points. The chances are about two DUI of three that the average rate shown would differ by less
than this amount from the average rate that would be found by a complete survey of the
universe of all banks
3. Average maturities are weighted by loan amount and exclude loans with no stated
maturities.
4. The most common base pricing rate is that used to price the largest dollar volume of
Base pricing rates include the prime rate (sometimes referred to as a bank's "base" or
Digitizedloans.
for FRASER
"reference" rale); the federal funds rate; domestic money market rates other than the prime
http://fraser.stlouisfed.org/
rate and Ihe federal funds rate; foreign money market rates; and other base rates not included
in the foregoing classifications.
Federal Reserve Bank of St. Louis
48
9
9
29
53.4
25.1
10.1
51.0
48.1
1.4
47.5
5.5
16.4
36.3
72.6
71.8
99.1
50.6
81.5
97.1
625
10242
5501
4919
5. A complete description of these risk categories is available from the Banking and
Money Market Statistics Section, Mail Stop 81, Board of Governors of the Federal Reserve
System, Washington. DC 20551. The category "Moderate risk" includes the average loan,
under average economic conditions, at the typical lender. The category "Acceptable nek" may
include a small volume of special mention or classified loans. The weighted-average risk
ralings published for loans in rows 31-39 are calculated by assigning a value of " 1 " to
minimal risk loans; "2" to low nsk loans; "3" to moderate risk loans. "4" lo acceptable risk
loans; and "5" to special mention and classified loans. These values are weighted by loan
amount and exclude loans with no risk rating. Some of the loans in lines 1.6, II, 16, 21, 26.
and 31-39 are not rated for risk.
6. The maturity/repricing interval measures the period from the date the loan is made until it
first may reprice or it matures. For floating-rate loans that are subject to repricing at any
time—such as many prime-based loans—the maturity/repricing interval is zero. For floating-rate
loans that have a scheduled repncing interval, the maturity/repricing interval measures the number
of days between the date the loan is made and the date on which it is next scheduled to reprice. For
loans having rates that remain fixed until the loan matures (fixed-rate loans), the maturity/repricing
interval measures the number of days between the date the loan is made and the date on which it
matures. Loans that reprice daily mature or reprice on the business day after they are made. Owing
to weekends and holidays, such loans may have maturity/repricing intervals in excess of one day;
such loans are not included in the "2 to 30 day" category.
7. For the current survey, the average reported prime rate, weighted by the amount of
loans priced relative to a prime base rate, was 8.55 percent for all banks; 8.50 percent for
large domestic banks, 8.72 percent for small domestic banks; and 8.50 percent for U.S.
branches and agencies of foreign banks.
A70
4.30
Special Tables • May 1998
ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 1997
Millions of dollars except as noted
New York
Total
including
1 Total assets4
IBFs
only
Total
including
IBFs
IBFs
only
Total
including
IBFs
IBFs
only
Total
including
IBFs
IBFs
only
925,249
272,147
726,479
235,615
56,676
12,121
63,027
9,834
2 Claims on nonrelated parties
3 Cash and balances due from depository institutions
4
Cash items in process of collection and unposted debits
5
Currency and coin (U.S. and foreign)
6
Balances with depository institutions in United Slates
7
U.S. branches and agencies of other foreign banks
(including IBFs)
8
Other depository institutions in United States (including IBFs). ..
9
Balances with banks in foreign countries and with foreign central
banks
10
Foreign branches of U.S. banks
11
Other banks in foreign countries and foreign central banks
12 Balances with Federal Reserve Banks
784,794
104,953
3,636
19
60.104
128,373
67,681
0
n.a.
33,169
610,090
98.144
3,476
14
55,383
109,383
63,820
0
n.a.
30,519
53,691
2,090
16
1
1.735
6,116
1,454
0
n.a.
1,200
62,951
2,378
28
1
1,659
3,432
1,461
0
n.a.
949
55,645
4,458
32,594
575
51,584
3,799
30,077
442
1,536
199
1,200
0
1,432
228
824
125
38,470
1,286
37,184
2,724
34,512
1,058
33,454
n.a.
36.791
1.177
35,614
2,479
33.301
1.005
32,296
n.a.
262
0
262
76
254
0
254
623
23
600
67
512
23
489
n.a.
13 Total securities and loans
484,457
51,991
346,045
38,107
48,651
4,180
47,495
1,423
14 Total securities, book value
15 U.S. Treasury.
16 Obligations of U.S. government agencies and corporations
17 Other bonds, notes, debentures, and corporate stock (including state
and local securities)
18
Securities of foreign governmental units
19
All Other
116,109
28,021
39,797
7,057
n.a.
n.a.
108,629
26,953
39,080
6,078
2,072
88
198
631
n.a.
4,437
592
332
48,291
17,406
30,885
7,057
3,486
3,570
42,596
16,475
26,121
6,078
3,124
2,955
1,786
443
1,343
631
169
462
3,513
391
3,122
301
165
136
71.603
10.975
15,715
44,913
5.962
3,904
720
1,338
62,454
9.874
14.397
38.183
5,000
3,343
720
937
904
448
290
166
370
260
0
110
5.976
440
599
4,937
485
300
0
185
368,599
251
368.348
44,965
32
44.934
237,584
168
237,416
32,051
22
32,028
46.623
44
46,579
3,549
43,066
8
43,058
1,123
1
1,122
25,302
36,823
9,353
7,300
2,052
16
27,454
953
26,502
49,425
142
25,880
5.414
4.916
497
0
20,467
702
19,764
1,284
16,353
22,333
5.922
4,353
1,569
16
16,396
787
15.609
38.194
72
16,719
3,697
3,218
479
0
13,022
586
12,436
847
6,440
3,104
1,967
1,784
183
0
1.137
0
1,136
3,068
70
2,164
1,169
1,161
8
0
995
0
994
269
1,027
1,495
627
355
272
0
869
0
869
6,614
0
794
215
205
10
0
579
0
579
13
37 Commercial and industrial loans
38
U.S. addressees (domicile)
39
Non-U.S. addressees (domicile)
40 Acceptances of other banks
41
U.S. banks
42
Foreign banks
43 Loans to foreign governments and official institutions (including
foreign central banks)
44 Loans for purchasing or carrying securities (secured and unsecured) .
45 All other loans
232,766
194,755
38.011
405
29
376
15,430
139
15,291
21
0
21
141,323
113,855
27,468
183
19
163
12,469
108
12,361
21
0
21
32,812
29,996
2,816
37
3
33
1.006
31
975
0
0
0
32,523
30,394
2,128
176
0
176
314
0
314
0
0
0
3,315
14,435
5.381
2,015
80
113
2,566
12,445
3,792
1,753
80
89
262
374
526
42
0
0
74
719
3
0
0
46
47
48
49
50
51
52
53
54
55
56
57
748
748
0
89,113
34,669
6,555
4,309
2,247
28.113
140,455
0
0
0
488
2.251
n.a.
n.a.
n.a.
2.251
143.774
395
395
0
75.504
27 942
4,649
3,080
1,569
23,293
116.390
0
0
0
486
1,969
n.a.
n.a.
n.a.
1,969
126,232
0
0
0
115
1.930
1,118
956
161
813
2.984
0
0
0
0
112
n.a.
n.a.
n.a.
112
6,005
350
350
0
4,546
2,557
516
177
339
2,041
76
116.390
n.a.
2,984
n.a.
126,232
n.a.
20 Federal funds sold and securities purchased under agreements to
resell
21
U.S. branches and agencies of other foreign banks
22
Commercial banks in United States
23 Other
24 Total loans, gross
25
LESS: Unearned income on loans
26
EQUALS: Loans, net
Total loans, gross, by category
27 Real estate loans
28 Loans to depository institutions
29
Commercial banks in United States (including IBFs)
30
U.S. branches and agencies of other foreign banks
31
Other commercial banks in United States
32
Other depository institutions in United States (including IBFs).
33
Banks in foreign countries
34
Foreign branches of U.S. banks
35
Other banks in foreign countries
Lease financing receivables (net of unearned income)
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Trading assets
All other assets
Customers' liabilities on acceptances outstanding
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Other assets including other claims on nonrelated parties
Net due from related depository institutions
Net due from head office and other related depository institutions5
Net due from establishing entity, head office, and other related
depository institutions
58 Total liabilities4
59 Liabilities to nonrelated parties
140,455
n.a.
925,249
760,522
143,774
272,147
247,229
726,479
235,615
56,676
645,978
216.506
22,065
0
0
0
2
60
60
6,402
76
6.005
12,121
11,231
n.a.
63,027
39,949
6,402
9334
9,482
U.S. Branches and Agencies A71
4.30
ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 1997—Continued
Millions of dollars except as noted
All states'
Total
excluding
IBFs3
60 Total deposits and credit balances
61
Individuals, partnerships, and corporations
62
U.S. addressees (domicile)
63
Non-U.S. addressees (domicile)
64
Commercial banks in United States (including IBFs)
65
U.S. branches and agencies of other foreign banks
66
Other commercial banks in United States
67
Banks in foreign countries
68
Foreign branches of U.S. banks
69
Other banks in foreign countries
70
Foreign governments and official institutions
(including foreign central banks)
71
All other deposits and credit balances
72
Certified and official checks
73 Transaction accounts and credit balances (excluding IBFs) .
74
Individuals, partnerships, and corporations
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Commercial banks in United States (including IBFs)
U.S. branches and agencies of other foreign banks
Other commercial banks in United States
Banks in foreign countries
Foreign branches of U.S. banks
Other banks in foreign countries
Foreign governments and official institutions
(including foreign central banks)
All other deposits and credit balances
85 Certified and official checks
86 Demand deposits (included in transaction accounts
and credit balances)
Individuals, partnerships, and corporations
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Commercial banks in United States (including IBFs)
U.S. branches and agencies of other foreign banks
Other commercial banks in United States
Banks in foreign countries
Foreign branches of U.S. banks
Other banks in foreign countries
Foreign governments and official institutions
(including foreign central banks)
All other deposits and credit balances
Certified and official checks
99 Nontransaction accounts (including MMDAs, excluding IBFs) .
100 Individuals, partnerships, and corporations
101
U.S. addressees (domicile)
102
Non-U.S. addressees (domicile)
103 Commercial banks in United States (including IBFs)
104
U.S. branches and agencies of other foreign banks
105
Other commercial banks in United States
106
Banks in foreign countries
107
Foreign branches of U.S. banks
108
Other banks in foreign countries
109 Foreign governments and official institutions
(including foreign central banks)
110 All other deposits and credit balances
111 IBF deposit liabilities
112 Individuals, partnerships, and corporations
113
U.S. addressees (domicile)
114
Non-US, addressees (domicile)
115 Commercial banks in United States (including IBFs)
116
U.S. branches and agencies of other foreign banks
117
Other commercial banks in United States
118 Banks in foreign countries
119
Foreign branches of U.S. banks
120
Other banks in foreign countries
121 Foreign governments and official institutions
(including foreign central banks)
122 All other deposits and credit balances
Footnotes appear at end of table.
272,367
205,972
189,875
16,098
32,295
19,144
13,151
11,483
3,214
8,269
7,258
15,014
345
New York
California
IBFs
only
Total
excluding
IBFs
IBFs
only
Total
excluding
IBFs
IBFs
only
Total
excluding
IBFs
IBFs
only
188,347
11,643
147
11,496
35,019
30,435
4,583
99.703
4,498
95,205
228,351
169,516
160,712
8,805
27,433
17,437
9,996
9,862
2,505
7,357
174,095
6,591
118
6,473
33,284
28,863
4,421
95,392
4,286
91,106
5,463
4,087
2,052
2,036
531
248
283
607
448
159
2,149
529
0
529
325
289
36
646
21
624
14,156
12,485
11,929
556
1,085
639
446
251
60
191
4,306
102
29
73
1,050
950
100
1,894
181
1,714
41,885
6,305
14,928
306
38,736
92
215
11
13
646
3
287
45
4
1,259
1
9,945
7,983
5,859
2,124
7,897
6,438
5,221
1,216
22
7
15
550
6
543
363
323
162
161
1
0
1
21
0
21
469
214
345
376
205
306
2
3
13
9,438
7,584
5,765
1,819
21
5
16
883
7
876
7,668
6,298
5,162
1.136
16
14
531
6
524
265
228
141
87
0
0
0
20
0
20
373
365
363
2
0
0
0
1
0
1
455
150
345
372
144
306
1
2
13
2
0
4
262,422
197,989
184,016
13,974
32,267
19,133
13,133
10,577
3,207
7,370
220,454
163,079
155,490
7,588
27.411
17.430
9.981
9,313
2,499
6,814
5,100
3,764
1,889
1.875
530
248
282
586
448
138
13,781
12,118
11,564
554
1,085
639
446
249
60
189
6,788
14,800
5.929
14,722
213
285
45
28
10
18
906
7
375
367
365
2
0
0
0
1
0
188.347
11.643
147
11,496
35,019
30,435
4,583
99,703
4,498
95,205
174.095
6.591
118
6,473
33,284
28,863
4,421
95,392
4,286
91,106
2.149
529
0
529
325
289
36
646
21
624
4,306
102
29
73
1,050
950
100
1,894
181
1.714
41,885
96
38,736
92
646
3
1,259
1
A72
4.30
Special Tables • May 1998
ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 1997—Continued
Millions of dollars except as noted
All states2
Total
including
IBFs3
123 Federal funds purchased and securities sold under agreements to
repurchase
124 US. branches and agencies of other foreign banks
125 Other commercial banks in United States
126 Other
127 Other borrowed money
128 Owed to nonrelated commercial banks in United States (including
IBFs)
129 Owed to U.S. offices of nonrelated U.S. banks
130 Owed to U.S. branches and agencies of nonrelated
foreign banks
131 Owed to nonrelated banks in foreign countries
132 Owed to foreign branches of nonrelated U.S. banks
133 Owed to foreign offices of nonrelated foreign banks
134 Owed to others
135 All other liabilities
136
Branch or agency liability on acceptances executed and
outstanding
137 Trading liabilities
138 Other liabilities to nonrelated parties
139 Net due to related depository institutions5
140 Net due to head office and other related depository institutions5 .. .
141
Net due to establishing entity, head office, and other related
depository institutions5
IBFs
only3
New York
Total
including
IBFs
IBFs
only
Total
including
IBFs
IBFs
only
Total
including
IBFs
114,418
11,164
7,235
96,019
92,409
20.623
4,977
317
15.329
35,540
103,792
8,263
5,963
89,566
63,950
16.997
3,398
123
13,475
22.933
1,828
933
514
381
10,935
778
428
126
224
8,208
6,398
1,376
329
4.692
9,894
2,123
760
68
1,295
2,981
16,768
6,135
7,519
976
10,973
4.828
4,267
625
3,358
799
2,129
299
1,298
212
758
10
10,632
25,173
1,361
23,811
50,469
6,542
23,033
1,240
21,793
4,988
6,145
16.017
499
15,519
36,960
3,642
14,280
421
13,859
4,386
2,559
6,048
641
5,407
1,529
1,830
5,932
629
5,303
147
1,085
2,081
165
1,916
6,516
748
2,006
165
1,841
216
92,982
72
2,720
75,791
2,482
1.689
96
5.194
6,878
61,421
24,683
154
2,566
5,150
49,841
20,801
n.a.
153
2,329
1.115
94
480
n.a.
0
96
319
3,978
164,727
164,727
24,918
n.a.
80.501
80.501
19,109
n.a.
34.611
34,611
890
n.a.
23,078
23,078
24,918
71
19,109
MEMO
142 Non-interest-bearing balances with commercial banks
in United States
143 Holding of own acceptances included in commercial and
industrial loans
144 Commercial and industrial loans with remaining maturity of one year
or less (excluding those in nonaccrual status)
145
Predetermined interest rates
146 Floating interest rates
147 Commercial and industrial loans with remaining maturity of more
than one year (excluding those in nonaccrual status)
148 Predetermined interest rates
149 Floating interest rates
IBFs
only
1,265
1,034
0
49
4,761
3,341
960
328
128,274
78.254
50,020
74,325
45,780
28,545
18,581
9,145
9.436
21,814
17,240
4,574
103,640
22,169
81,471
66,357
15,970
50.387
14,115
2,236
11.878
10.642
2.628
8,014
352
U.S. Branches and Agencies
4.30
A73
ASSETS AND LIABILITIES of US. Branches and Agencies of Foreign Banks, December 31, 1997'—Continued
Millions of dollars except as noted
All states2
Item
150 Components of total nontransaclion accounts,
included in total deposits and credit balances of
nontransaction accounts, excluding IBFs
151 Time deposits of $100,000 or more
152 Time CDs in denominations of $100,000 or more
with remaining maturity of more than 12 months
New York
153 Immediately available funds with a maturity greater than one day
included in other borrowed money
154 Number of reports filed6
IBFs
only
Total
excluding
IBFs
IBFs
only
n.a.
n.a.
3,276
3,199
n.a.
n.a.
14,047
13,382
n.a.
n.a.
n.a.
77
n.a.
664
n.a.
IBFs
only
Total
excluding
IBFs
IBFs
only
262,154
253,369
n.a.
n.a.
221,998
214,837
8,785
n.a.
7,161
New York
California
Illinois
Total
including
IBFs
IBFs
only
Total
including
IBFs
IBFs
only
Total
including
IBFs
IBFs
only
Total
including
IBFs
IBFs
only
44,080
463
n.a.
0
31,611
234
n.a.
0
7,034
98
n.a.
0
3,275
36
n.a.
0
1. Data are aggregates of categories reported on the quarterly form FFIEC 002, "Report of
Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks." The form was first
used for reporting data as of June 30, 1980, and was revised as of December 31, 1985. From
November 1972 through May 1980, U.S. branches and agencies of foreign banks had filed a
monthly FR 886a report. Aggregate data from that report were available through the Federal
Reserve monthly statisticalreleaseG.il, last issued on July 10, 1980. Data in this table and in
the G. 11 tables are not strictly comparable because of differences in reporting panels and in
definitions of balance sheet items.
2. Includes the District of Columbia.
3. Effective December 1981, the Federal Reserve Board amended Regulations D and Q to
permit banking offices located in the United States to operate international banking facilities
(IBFs). Since December 31, 1985, data for IBFs have been reported in a separate column.
These data are either included in or excluded from the total columns as indicated in the
headings. The notation "n.a." indicates that no IBF data have been reported for that item,
Total
excluding
IBFs
Total
excluding
IBFs3
All states2
Illinois
California
either because the item is not an eligible IBF asset or liability or because that level of detail is
not reported for IBFs. From December 1981 through September 1985. IBF data were
included in all applicable items reported.
4. Total assets and total liabilities include net balances, if any, due from or owed to related
banking institutions in the United States and in foreign countries (see note 5). On the former
monthly branch and agency report, available through the G.ll monthly statistical release,
gross balances were included in total assets and total liabilities. Therefore, total asset and total
liability figures in this table are not comparable to those in the G. 11 tables.
5. Related depository institutions includes the foreign head office and other U.S. and
foreign branches and agencies of a bank, a bank's parent holding company, and majorityowned banking subsidiaries of the bank and of its parent holding company (including
subsidiaries owned both directly and indirectly).
6. In some cases two or more offices of a foreign bank within the same metropolitan area
file a consolidated report.
A74
Index to Statistical Tables
References are to pages A3-A73 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Assets and liabilities (See also Foreigners)
Commercial banks, 15-21, 64, 65
Domestic finance companies, 32, 33
Federal Reserve Banks, 10
Foreign banks, U.S. branches and agencies, 70-73
Foreign-related institutions, 20
Automobiles
Consumer credit, 36
Production, 44, 45
BANKERS acceptances, 5, 10, 22, 23
Bankers balances, 15-21, 70-73. (See also Foreigners)
Bonds (See also U.S. government securities)
New issues. 31
Rates, 23
Business activity, nonfinancial, 42
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 43
Capital accounts
Commercial banks, 15-21, 64, 65
Federal Reserve Banks, 10
Central banks, discount rates, 61
Certificates of deposit, 23
Commercial and industrial loans
Commercial banks, 15-21, 64, 65, 66-69
Weekly reporting banks, 17, 18
Commercial banks
Assets and liabilities, 15-21, 64, 65
Commercial and industrial loans, 15-21, 64, 65, 66-69
Consumer loans held, by type and terms, 36, 66-69
Number, by classes, 64, 65
Real estate mortgages held, by holder and property, 35
Terms of lending, 66-69
Time and savings deposits, 4
Commercial paper, 22, 23, 32
Condition statements (See Assets and liabilities)
Construction, 42, 46
Consumer credit, 36
Consumer prices, 42
Consumption expenditures, 48, 49
Corporations
Profits and their distribution. 32
Security issues, 31, 61
Cost of living (See Consumer prices)
Credit unions, 36
Currency in circulation, 5, 13
Customer credit, stock market, 24
DEBT (See specific types of debt or securities)
Demand deposits, 15-21
Depository institutions
Reserve requirements, 8
Reserves and related items, 4, 5, 6, 12, 64, 65
Deposits (See also specific types)
Commercial banks, 4, 15-21, 64, 65
Federal Reserve Banks, 5, 10
Discount rales at Reserve Banks and at foreign central banks and
foreign countries (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 32
EMPLOYMENT, 42
Eurodollars, 23, 61
FARM mortgage loans, 35
Federal agency obligations, 5, 9, 10, 11, 28, 29
Federal credit agencies, 30
Federal finance
Debt subject to statutory limitation, and types and ownership
of gross debt, 27
Receipts and outlays, 25, 26
Treasury financing of surplus, or deficit, 25
Treasury operating balance, 25
Federal Financing Bank, 30
Federal funds, 23, 25
Federal Home Loan Banks, 30
Federal Home Loan Mortgage Corporation, 30, 34, 35
Federal Housing Administration, 30, 34, 35
Federal Land Banks, 35
Federal National Mortgage Association, 30, 34, 35
Federal Reserve Banks
Condition statement, 10
Discount rates (See Interest rates)
U.S. government securities held, 5, 10, 11, 27
Federal Reserve credit, 5, 6, 10, 12
Federal Reserve notes, 10
Federally sponsored credit agencies, 30
Finance companies
Assets and liabilities, 32
Business credit, 33
Loans, 36
Paper, 22, 23
Float, 5
Flow of funds, 37-41
Foreign banks, US. branches and agencies, 69, 70-73
Foreign currency operations, 10
Foreign deposits in U.S. banks, 5
Foreign exchange rates, 62
Foreign-related institutions. 20
Foreign trade, 51
Foreigners
Claims on, 52, 55, 56, 57, 59
Liabilities to, 51, 52, 53, 58, 60, 61
GOLD
Certificate account, 10
Stock, 5, 51
Government National Mortgage Association, 30, 34, 35
Gross domestic product, 48, 49
HOUSING, new and existing units, 46
INCOME, personal and national, 42, 48, 49
Industrial production, 42, 44
Insurance companies, 27, 35
Interest rates
Bonds, 23
Commercial banks, 66—69
Consumer credit, 36
Federal Reserve Banks, 7
Foreign banks, U.S. branches and agencies, 69
Foreign central banks and foreign countries, 61
Money and capital markets, 23
Mortgages, 34
Prime rate, 22
International capital transactions of United States, 50-61
International organizations, 52, 53, 55, 58, 59
Inventories, 48
Investment companies, issues and assets, 32
A75
Investments (See also specific types)
Commercial banks, 4, 15-21, 64, 65
Federal Reserve Banks, 10, 11
Financial institutions, 35
LABOR force, 42
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Commercial banks, 15-21, 64, 65, 66-69
Federal Reserve Banks. 5, 6, 7, 10, 11
Financial institutions, 35
Foreign banks. U.S. branches and agencies, 69
Insured or guaranteed by United States, 34, 35
MANUFACTURING
Capacity utilization, 43
Production, 43, 45
Margin requirements, 24
Member banks (See also Depository institutions)
Reserve requirements, 8
Mining production, 45
Mobile homes shipped, 46
Monetary and credit aggregates, 4, 12
Money and capital market rates, 23
Money stock measures and components, 4, 13
Mortgages (See Real estate loans)
Mutual funds, 13, 32
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 26
National income, 48
OPEN market transactions, 9
PERSONAL income, 49
Prices
Consumer and producer, 42, 47
Stock market, 24
Prime rate, 22
Producer prices, 42, 47
Production, 42, 44
Profits, corporate, 32
REAL estate loans
Banks, 15-21, 35
Terms, yields, and activity, 34
Type of holder and property mortj
Reserve requirements, 8
Reserves
Commercial banks, 15-21
Depository institutions, 4, 5, 6, 12
Federal Reserve Banks, 10
U.S. reserve assets, 51
Residential mortgage loans, 34, 35
Retail credit and retail sales, 36, 42
,35
SAVING
Flow of funds, 37-41
National income accounts, 48
Savings institutions, 35, 36, 37^41
Savings deposits (See Time and savings deposits)
Securities (See also specific types)
Federal and federally sponsored credit agencies, 30
Foreign transactions, 60
New issues, 31
Prices, 24
Special drawing rights, 5, 10, 50, 51
State and local governments
Holdings of U.S. government securities, 27
New security issues, 31
Rates on securities, 23
Stock market, selected statistics, 24
Stocks (See also Securities)
New issues, 31
Prices, 24
Student Loan Marketing Association, 30
TAX receipts, federal, 26
Thrift institutions, 4. (See also Credit unions and Savings
institutions)
Time and savings deposits, 4, 13, 15-21, 64, 65
Trade, foreign, 51
Treasury cash, Treasury currency, 5
Treasury deposits, 5, 10, 25
Treasury operating balance, 25
UNEMPLOYMENT, 42
U.S. government balances
Commercial bank holdings, 15-21
Treasury deposits at Reserve Banks, 5, 10. 25
U.S. government securities
Bank holdings, 15-21,27
Dealer transactions, positions, and financing, 29
Federal Reserve Bank holdings, 5, 10, 11, 27
Foreign and international holdings and
transactions, 10. 27, 61
Open market transactions, 9
Outstanding, by type and holder, 27, 28
Rates, 23
U.S. international transactions, 50-62
Utilities, production, 45
VETERANS Administration, 34, 35
WEEKLY reporting banks, 17, 18
Wholesale (producer) prices, 42, 47
YIELDS (See Interest rates)
A76
Federal Reserve Bulletin • May 1998
Federal Reserve Board of Governors
and Official Staff
ALAN GREENSPAN, Chairman
ALICE M. RIVLIN, Vice Chair
EDWARD W. KELLEY, JR.
SUSAN M. PHILLIPS
OFFICE OF BOARD MEMBERS
DIVISION OF INTERNATIONAL FINANCE
JOSEPH R. COYNE, Assistant to the Board
DONALD J. WINN, Assistant to the Board
EDWIN M. TRUMAN, Staff Director
LARRY J. PROMISEL, Senior Adviser
LEWIS S. ALEXANDER, Associate Director
DALE W. HENDERSON, Associate Director
PETER HOOPER III, Associate Director
KAREN H. JOHNSON, Associate Director
DAVID H. HOWARD, Senior Adviser
DONALD B. ADAMS, Assistant Director
THOMAS A. CONNORS, Assistant Director
THEODORE E. ALLISON, Assistant to the Board for Federal
Reserve System Affairs
LYNN S. FOX, Deputy Congressional Liaison
WINTHROP P. HAMBLEY, Special Assistant to the Board
BOB STAHLY MOORE, Special Assistant to the Board
DIANE E. WERNEKE, Special Assistant to the Board
LEGAL DIVISION
J. VIRGIL MATTINGLY, JR., General Counsel
SCOTT G. ALVAREZ, Associate General Counsel
RICHARD M. ASHTON, Associate General Counsel
OLIVER IRELAND, Associate General Counsel
KATHLEEN M. O'DAY, Associate General Counsel
ROBERT DEV. FRIERSON, Assistant General Counsel
KATHERINE H. WHEATLEY, Assistant General Counsel
OFFICE OF THE SECRETARY
WILLIAM W. WILES, Secretary
JENNIFER J. JOHNSON, Deputy Secretary
BARBARA R. LOWREY, Associate Secretary and Ombudsman
DIVISION OF BANKING
SUPERVISION AND REGULATION
RICHARD SPILLENKOTHEN, Director
STEPHEN C. SCHEMERING, Deputy Director
HERBERT A. BIERN, Associate Director
ROGER T. COLE, Associate Director
WILLIAM A. RYBACK, Associate Director
GERALD A. EDWARDS, JR., Deputy Associate Director
STEPHEN M. HOFFMAN, JR., Deputy Associate Director
JAMES V. HOUPT, Deputy Associate Director
JACK P. JENNINGS, Deputy Associate Director
MICHAEL G. MARTINSON, Deputy Associate Director
SIDNEY M. SUSSAN, Deputy Associate Director
MOLLY S. WASSOM, Deputy Associate Director
HOWARD A. AMER, Assistant Director
NORAH M. BARGER, Assistant Director
BETSY CROSS, Assistant Director
RICHARD A. SMALL, Assistant Director
WILLIAM SCHNEIDER, Project Director,
National Information Center
DIVISION OF RESEARCH AND STATISTICS
MICHAEL J. PRELL, Director
EDWARD C. ETTIN, Deputy Director
DAVID J. STOCKTON, Deputy Director
MARTHA BETHEA, Associate Director
WILLIAM R. JONES, Associate Director
MYRON L. KWAST, Associate Director
PATRICK M. PARKINSON, Associate Director
THOMAS D. SIMPSON, Associate Director
LAWRENCE SLIFMAN, Associate Director
MARTHA S. SCANLON, Deputy Associate Director
PETER A. TINSLEY, Deputy Associate Director
DAVID S. JONES, Assistant Director
STEPHEN D. OLINER, Assistant Director
STEPHEN A. RHOADES, Assistant Director
JANICE SHACK-MARQUEZ, Assistant Director
CHARLES S. STRUCKMEYER, Assistant Director
ALICE PATRICIA W H I T E , Assistant Director
JOYCE K. ZICKLER, Assistant Director
GLENN B. CANNER, Senior Adviser
JOHN J. MINGO, Senior Adviser
DIVISION OF MONETARY AFFAIRS
DONALD L. KOHN, Director
DAVID E. LINDSEY, Deputy Director
BRIAN F. MADIGAN, Associate Director
RICHARD D. PORTER, Deputy Associate Director
VINCENT R. REINHART, Assistant Director
NORMAND R.V. BERNARD, Special Assistant to the Board
DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
GRIFFITH L. GARWOOD, Director
GLENN E. LONEY, Associate Director
DOLORES S. SMITH, Associate Director
MAUREEN P. ENGLISH, Assistant Director
IRENE SHAWN MCNULTY, Assistant Director
A77
LAURENCE H. MEYER
ROGER W. FERGUSON, JR.
EDWARD M. GRAMLICH
OFFICE OF
STAFF DIRECTOR FOR MANAGEMENT
DIVISION OF RESERVE BANK OPERATIONS
AND PAYMENT SYSTEMS
S. DAVID FROST, Staff Director
CLYDE H. FARNSWORTH, JR., Director
GEORGE E. LIVINGSTON, Senior Adviser to the Board
DAVID L. SHANNON, Senior Adviser to the Board
JOHN R. WEIS, Adviser
MANAGEMENT DIVISION
S. DAVID FROST, Director
SHEILA CLARK, EEO Programs Director
STEPHEN J. CLARK, Associate Director, Finance Function
DARRELL R. PAULEY, Associate Director, Human Resources
Function
DAVID L. ROBINSON, Deputy Director (Finance and Control)
LOUISE L. ROSEMAN, Associate Director
PAUL W. BETTGE, Assistant Director
JACK DENNIS, JR., Assistant Director
EARL G. HAMILTON, Assistant Director
JOSEPH H. HAYES, JR., Assistant Director
JEFFREY C. MARQUARDT, Assistant Director
MARSHA REIDHILL, Assistant Director
OFFICE OF THE INSPECTOR
GENERAL
BRENT L. BOWEN, Inspector General
DIVISION
OF SUPPORT
SERVICES
ROBERT E. FRAZIER, Director
GEORGE M. LOPEZ, Assistant Director
DAVID L. WILLIAMS, Assistant Director
DIVISION OF INFORMATION RESOURCES
MANAGEMENT
STEPHEN R. MALPHRUS, Director
MARIANNE M. EMERSON, Assistant Director
Po KYUNG KIM, Assistant Director
RAYMOND H. MASSEY, Assistant Director
EDWARD T. MULRENIN, Assistant Director
DAY W. RADEBAUGH, JR., Assistant Director
ELIZABETH B. RIGGS, Assistant Director
RICHARD C. STEVENS, Assistant Director
DONALD L. ROBINSON, Assistant Inspector General
BARRY R. SNYDER, Assistant Inspector General
A78
Federal Reserve Bulletin • May 1998
Federal Open Market Committee
and Advisory Councils
FEDERAL OPEN MARKET COMMITTEE
MEMBERS
WILLIAM J. MCDONOUGH, Vice Chairman
ALAN GREENSPAN, Chairman
ROGER W. FERGUSON, JR.
EDWARD M. GRAMLICH
THOMAS M. HOENIG
JERRY L. JORDAN
EDWARD W. KELLEY, JR.
LAURENCE H. MEYER
CATHY E. MINEHAN
SUSAN M. PHILLIPS
WILLIAM POOLE
ALICE M. RIVLIN
ALTERNATE MEMBERS
EDWARD G. BOEHNE
ROBERT D. MCTEER, JR.
GARY H. STERN
MICHAEL H. MOSKOW
ERNEST T. PATRIKIS
STAFF
DONALD L. KOHN, Secretary and Economist
NORMAND R.V. BERNARD, Deputy Secretary
JOSEPH R. COYNE, Assistant Secretary
GARY P. GILLUM, Assistant Secretary
J. VIRGIL MATTINGLY, JR., General Counsel
THOMAS C. BAXTER, JR., Deputy General Counsel
MICHAEL J. PRELL, Economist
EDWIN M. TRUMAN, Economist
LYNN E. BROWNE, Associate
STEPHEN G. CECCHETTI, Associate Economist
WILLIAM G. DEWALD, Associate Economist
CRAIG S. HAKKIO, Associate Economist
DAVID E. LINDSEY, Associate Economist
LARRY J. PROMISEL, Associate Economist
MARK S. SNIDERMAN, Associate Economist
THOMAS D. SIMPSON, Associate Economist
DAVID J. STOCKTON, Associate Economist
Economist
PETER R. FISHER, Manager, System Open Market Account
FEDERAL ADVISORY COUNCIL
THOMAS H. JACOBSEN, President
CHARLES T. DOYLE, Vice President
WILLIAM M. CROZIER, JR., First District
DOUGLAS A. WARNER III, Second District
WALTER E. DALLER, JR., Third District
ROBERT W. GILLESPIE, Fourth District
KENNETH D. LEWIS, Fifth District
STEPHEN A. HANSEL, Sixth District
NORMAN R. BOBINS, Seventh District
THOMAS H. JACOBSEN, Eighth District
RICHARD A. ZONA, Ninth District
C. Q. CHANDLER, Tenth District
CHARLES T. DOYLE, Eleventh District
DAVID A. COULTER, Twelfth District
HERBERT V. PROCHNOW, Secretary Emeritus
JAMES ANNABLE, Co-Secretary
WILLIAM J. KORSVIK, Co-Secretary
A79
CONSUMER ADVISORY COUNCIL
WILLIAM N. LUND, Augusta, Maine, Chainnan
YVONNE S. SPARKS, St. Louis, Missouri, Vice Chairman
RICHARD S. AMADOR, LOS Angeles, California
WALTER J. BOYER, Garland, Texas
WAYNE-KENT A. BRADSHAW, LOS Angeles, California
JEREMY EISLER, Ocean Springs, Mississippi
ROBERT F. ELLIOT, Prospect Heights, Illinois
HERIBERTO FLORES, Springfield, Massachusetts
DWIGHT GOLANN, Boston, Massachusetts
MARVA H. HARRIS, Pittsburgh, Pennsylvania
KARLA IRVINE, Cincinnati, Ohio
FRANCINE C. JUSTA, New York, New York
JANET C. KOEHLER, Jacksonville, Florida
GWENN KYZER, Allen, Texas
JOHN C. LAMB, Sacramento, California
ERROL T. LOUIS, Brooklyn, New York
MARTHA W. MILLER, Greensboro, North Carolina
DANIEL W. MORTON, Columbus, Ohio
CHARLOTTE NEWTON, Springfield, Virginia
CAROL PARRY, New York, New York
PHILIP PRICE, JR., Philadelphia, Pennsylvania
DAVID L. RAMP, Minneapolis, Minnesota
MARILYN ROSS, Omaha, Nebraska
MARGOT SAUNDERS, Washington, D.C.
ROBERT G. SCHWEMM, Lexington, Kentucky
DAVID J. SHIRK, Eugene, Oregon
GAIL SMALL, Lame Deer, Montana
GREGORY D. SQUIRES. Milwaukee, Wisconsin
GEORGE P. SURGEON, Chicago, Illinois
THEODORE J. WYSOCKI, JR., Chicago, Illinois
THRIFT INSTITUTIONS ADVISORY COUNCIL
CHARLES R. RINEHART, Irwindale, California, President
WILLIAM A. FITZGERALD, Omaha, Nebraska, Vice President
GAROLD R. BASE, Piano, Texas
DAVID A. BOCHNOWSKI, Munster, Indiana
DAVID E. A. CARSON, Bridgeport, Connecticut
RICHARD P. COUGHLIN, Stoneham, Massachusetts
STEPHEN D. HAILER, Akron, Ohio
F. WELLER MEYER, Falls Church, Virginia
EDWARD J. MOLNAR, Harleysville, Pennsylvania
GUY C. PINKERTON, Seattle, Washington
TERRY R. WEST, Jacksonville, Florida
FREDERICK WILLETTS, III, Wilmington, North Carolina
A80
Federal Reserve Bulletin • May 1998
Federal Reserve Board Publications
For ordering assistance, write PUBLICATIONS SERVICES,
MS-127, Board of Governors of the Federal Reserve System,
Washington, DC 20551, or telephone (202) 452-3244, or FAX
(202) 728-5886. You may also use the publications order
form available on the Board's World Wide Web site
(http://www.bog.frb.fed.us). When a charge is indicated, payment
should accompany request and be made payable to the Board of
Governors of the Federal Reserve System or may be ordered via
Mastercard, Visa, or American Express. Payment from foreign
residents should be drawn on a U.S. bank.
BOOKS AND MISCELLANEOUS PUBLICATIONS
THE
FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS.
1994. 157 pp.
ANNUAL REPORT, 1996.
ANNUAL REPORT: BUDGET REVIEW, 1995-96.
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239 pp.
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REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL
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ANNUAL
PERCENTAGE RATE
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in
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GUIDE TO THE FLOW OF FUNDS ACCOUNTS. 672 pp. $8.50 each.
FEDERAL RESERVE REGULATORY SERVICE. Loose-leaf: updated
monthly. (Requests must be prepaid.)
Consumer and Community Affairs Handbook. $75.00 per year.
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Federal Reserve Regulatory Service. Four vols. (Contains all
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Rates for subscribers outside the United States are as follows
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Subscribers outside the United Stales should add $50 to cover
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THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A MULTI-
COUNTRY MODEL, May 1984. 590 pp. $14.50 each.
INDUSTRIAL
PRODUCTION —1986
EDITION.
December
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440 pp. $9.00 each.
FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY.
December 1986. 264 pp. $10.00 each.
FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALY-
SIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each.
RISK MEASUREMENT AND SYSTEMIC RISK: PROCEEDINGS OF A
JOINT CENTRAL BANK RESEARCH CONFERENCE. 1996.
578 pp. $25.00 each.
EDUCATION PAMPHLETS
Short pamphlets suitable for classroom use. Multiple copies are
available without charge.
Consumer Handbook on Adjustable Rate Mortgages
Consumer Handbook to Credit Protection Laws
A Guide to Business Credit for Women, Minorities, and Small
Businesses
Series on the Structure of the Federal Reserve System
The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
A Consumer's Guide to Mortgage Lock-Ins
A Consumer's Guide to Mortgage Settlement Costs
A Consumer's Guide to Mortgage Refinancings
Home Mortgages: Understanding the Process and Your Right
to Fair Lending
How to File a Consumer Complaint
Making Deposits: When Will Your Money Be Available?
Making Sense of Savings
SHOP: The Card You Pick Can Save You Money
Welcome to the Federal Reserve
When Your Home is on the Line: What You Should Know
About Home Equity Lines of Credit
Keys to Vehicle Leasing
A81
STAFF STUDIES: Only Summaries Printed in the
166.
Studies and papers on economic and financial subjects that are of
general interest. Requests to obtain single copies of the full text or
to be added to the mailing list for the series may be sent to
Publications Services.
Staff Studies 1-157 are out of print.
158.
168.
T H E ECONOMICS OF THE PRIVATE EQUITY MARKET, by
by Stephen A. Rhoades. July 1994. 37 pp.
169.
BANK MERGERS AND INDUSTRYWIDE STRUCTURE, 1980-94,
PRODUCTS, by Mark J. Warshawsky with the assistance of
Dietrich Earnhart. September 1989. 23 pp.
170.
T H E COST OF IMPLEMENTING CONSUMER FINANCIAL REGULATIONS: A N ANALYSIS OF EXPERIENCE WITH THE TRUTH
160.
BANKING MARKETS AND THE USE OF FINANCIAL SERVICES BY SMALL AND MEDIUM-SIZED BUSINESSES, by
Donald Savage. February 1990. 12 pp.
A REVIEW
OF CORPORATE
RESTRUCTURING
ACTIVITY,
1980-90, by Margaret Hastings Pickering. May 1991.
21p P .
162.
EVIDENCE ON THE SIZE OF BANKING MARKETS FROM MORTGAGE LOAN RATES IN TWENTY CITIES, by Stephen A.
163.
CLEARANCE AND SETTLEMENT IN U.S. SECURITIES MAR-
Rhoades. February 1992. 11 pp.
KETS, by Patrick Parkinson, Adam Gilbert, Emily Gollob,
Lauren Hargraves, Richard Mead, Jeff Stehm, and Mary
Ann Taylor. March 1992. 37 pp.
T H E 1989-92 CREDIT CRUNCH
FOR REAL ESTATE, by
James T. Fergus and John L. Goodman, Jr. July 1993.
20 pp.
T H E DEMAND FOR TRADE CREDIT: A N INVESTIGATION OF
MOTIVES FOR TRADE CREDIT USE BY SMALL BUSINESSES, by
Gregory E. Elliehausen and John D. Wolken. September
1993. 18 pp.
by Stephen A. Rhoades. February 1996. 29 pp.
IN SAVINGS ACT. by Gregory Elliehausen and Barbara R.
Lowery, December 1997. 17 pp.
171.
Gregory E. Elliehausen and John D. Wolken. September
1990. 35 pp.
165.
A SUMMARY OF MERGER PERFORMANCE STUDIES IN BANKING, 1980-93, AND AN ASSESSMENT OF THE "OPERATING
PERFORMANCE" AND "EVENT S T U D Y " METHODOLOGIES,
T H E ADEQUACY AND CONSISTENCY OF MARGIN REQUIREMENTS IN THE MARKETS FOR STOCKS AND DERIVATIVE
NEW DATA ON THE PERFORMANCE OF NONBANK SUBSIDIARIES OF BANK HOLDING COMPANIES, by Nellie Liang and
164.
167.
George W. Fenn. Nellie Liang, and Stephen Prowse. November 1995. 69 pp.
159.
161.
T H E ECONOMICS OF THE PRIVATE PLACEMENT MARKET, by
Mark Carey, Stephen Prowse, John Rea, and Gregory Udell.
January 1994. I l l pp.
BULLETIN
T H E COST OF BANK REGULATION: A REVIEW OF THE EVI-
DENCE, by Gregory Elliehausen, April 1998. 35 pp.
REPRINTS OF SELECTED Bulletin ARTICLES
Some Bulletin articles are reprinted. The articles listed below are
those for which reprints are available. Beginning with the January 1997 issue, articles are available on the Board's World Wide
Web site (http://www.bog.frb.fed.us) under Publications, Federal
Reserve Bulletin articles.
Limit of ten copies
FAMILY FINANCES IN THE U.S.: RECENT EVIDENCE FROM THE
SURVEY OF CONSUMER FINANCES. January 1997.
A82
Federal Reserve Bulletin • May 1998
Maps of the Federal Reserve System
EW YORK
LEGEND
Both pages
•
Federal Reserve Bank city
a Board of Governors of the Federal
Reserve System, Washington, D.C.
Facing page
• Federal Reserve Branch city
— Branch boundary
NOTE
The Federal Reserve officially identifies Districts by number and Reserve Bank city (shown on both pages) and by
letter (shown on the facing page).
In the 12th District, the Seattle Branch serves Alaska,
and the San Francisco Bank serves Hawaii.
The System serves commonwealths and territories as
follows: the New York Bank serves the Commonwealth
of Puerto Rico and the U.S. Virgin Islands; the San Francisco Bank serves American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands. The Board of
Governors revised the branch boundaries of the System
most recently in February 1996.
A83
1-A
2-B
Buffalo
BOSTON
5-E
Pittsburgh
Baltimgjfi MD
fcinnati
$•>
'
%
4-D
3-C
NY
NEW YORK
PHILADELPHIA
CLEVELAND
7-G
RICHMOND
8-H
sville
'emphis
ATLANTA
ST. LOUIS
CHICAGO
9-1
MINNEAPOLIS
10-J
12-L
if
1
) V
ALASKA ^ ^ f c
KANSAS CITY
11-K
DALLAS
SAN FRANCISCO
A84
Federal Reserve Bulletin • May 1998
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
William C. Brainard
William O. Taylor
Cathy E. Minehan
Paul M. Connolly
NEW YORK*
10045 John C. Whitehead
Thomas W. Jones
14240 Bal Dixit
William J. McDonough
Ernest T. Patrikis
PHILADELPHIA
19105 Joan Carter
Charisse R. Lillie
Edward G. Boehne
William H. Stone, Jr.
CLEVELAND*
44101
G. Watts Humphrey, Jr.
David H. Hoag
45201 George C. Juilfs
15230 John T. Ryan III
Jerry L. Jordan
Sandra Pianalto
23219
Claudine B. Malone
Robert L. Strickland
21203 Daniel R. Baker
28230 Dennis D. Lowery
J. Alfred Broaddus, Jr.
Walter A. Varvel
30303
David R. Jones
John F. Wieland
Patricia B. Compton
Judy Jones
R. Kirk Landon
Frances F. Marcum
Lucimarian Roberts
Jack Guynn
Patrick K. Barron
Lester H. McKeever, Jr.
Arthur C. Martinez
Florine Mark
Michael H. Moskow
William C. Conrad
John F. McDonnell
Susan S. Elliott
Betta M. Carney
Roger Reynolds
Carol G. Crawley
William H. Poole
W. LeGrande Rives
David A. Koch
James J. Howard
William P. Underriner
Gary H. Stern
Colleen K. Strand
Jo Marie Dancik
Terrence P. Dunn
Peter I. Wold
Barry L. Eller
Arthur L. Shoener
Thomas M. Hoenig
Richard K. Rasdall
Roger R. Hemminghaus
James A. Martin
Patricia Z. Holland-Branch
Edward O. Gaylord
H. B. Zachry, Jr.
Robert D. McTeer, Jr.
Helen E. Holcomb
Gary G. Michael
Cynthia A. Parker
Anne L. Evans
Carol A. Whipple
Richard E. Davis
Richard R. Sonstelie
Robert T. Parry
John F. Moore
Buffalo
Cincinnati
Pittsburgh
RICHMOND*
Baltimore
Charlotte
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
35283
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
OklahomaCity
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75201
79999
77252
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Vice President
in charge of branch
Carl W. Turnipseed'
Charles A. Cerino1
Robert B. Schaub
William J. Tignanelli'
DanM. Bechter1
James M. Mckee
Fred R. Herr1
James D. Hawkins1
James T. Curry 111
Melvyn K. Purcell
Robert J. Musso
David R. Allardice'
Robert A. Hopkins
Thomas A. Boone
Martha L. Perine
John D.Johnson
Carl M. Gambs'
Kelly J. Dubbert
Steven D. Evans
Sammie C. Clay
Robert Smith, fl['
James L. Stull'
MarkL. Mullinix'
Raymond H. Laurence'
Andrea P. Wolcott
Gordon R. G. Werkema2
'Additional offices of these Banks are located at Windsor Locks, Connecticut 06096; East Rutherford, New Jersey 07016; Utica at Oriskany, New York 13424;
Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; Milwaukee,
Wisconsin 53202; and Peoria, Illinois 61607.
1. Senior Vice President.
2. Executive Vice President
@FedFRASER